Golden Copy: Wave of Distributed Ledger Technology
Early push to mine blockchain's foundation for data management gives way to realities
Last month, comments made by industry sources gave the impression that fragmentation inherent in the distributed ledger technology spawned by blockchain could make it difficult to apply the technology to reference data management.
The Depository Trust & Clearing Corporation (DTCC), as the de-facto industry utility for collecting records of transactions and their settlements, is the body that ought to or may have to make use of distributed ledger technology to improve on its recordkeeping and the accuracy of its data.
In March, Robert Palatnick, managing director and chief technology architect at DTCC, indicated that applying distributed ledger technology could help address reference data reconciliation, as well as mapping against counterparty reference data, and clearance and settlement utilities. He said he saw the possibility of providing value in this manner.
Palatnick gave an update on DTCC's distributed ledger technology stance this past week to sister site WatersTechnology. While he reiterated strong support for the idea that value can be derived from the technology for data management, Palatnick revealed that DTCC is cautiously examining a few different distributed ledger technology efforts, and waiting to see which one will prove steadiest or most fruitful.
Palatnick also warned against speculation about the potential for distributed ledger technology and said DTCC is still evaluating which applications of the technology for data operations will actually make sense.
This stance is quite in line with what Jeff Zoller, chair of financial industry operations group ISITC, also was saying back in March. So while there may have been a wave of enthusiasm for applying blockchain's underlying technology to the financial industry's data operations at the start of this year, that wave appears to have crested. The industry is starting to see the ocean of work stretching out to the horizon that must be traversed before distributed ledger technology can be integrated into its functions.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
$135.6m fines prompt Citi to modernize infrastructure, controls
The bank was hit with a combined $135.6 million fine on Wednesday for failing to resolve “longstanding internal controls and risk issues,” amid continued internal work across the enterprise.
SocGen pushes data, analytics use cases for SG Markets
The bank is letting a handful of clients experiment with its proprietary data and models to inform their research.
Finra clears hurdle with CAT launch, but several others remain
Two major components of the consolidated audit trail are now in place. But wrangling over the CAT’s future continues.
Ace high or busted flush? Digital Asset’s mixed fortunes mirror DLT adversity
The vendor hoped to remodel post-trade using blockchain technology—and it still might—but its bumpy progress raises questions over the future of DLT in finance.
The IMD Wrap: It’s the data, Cupid!
As BlackRock buys Preqin, and LSEG strikes a data deal with Dow Jones, Max notes that in data, strange bedfellows breed valuable offspring.
This Week: BlackRock/Preqin, Trading Technologies, FIA Tech and more
A summary of some of the past week’s financial technology news.
US banks seek to open vendors’ black box on green data
Inaugural Fed climate scenario analysis flags lack of transparency around third-party models.
IEX Cloud closure forces fintech clients to seek data alternatives
IEX says it is ditching its unprofitable data arm to focus on its core exchange business, but other vendors believe they can turn a profit from its former client base of fintechs, retail investors and some institutions.