Utilizing Blockchain Technology for Post-Trade Securities Settlement: A Framework for Islamic Capital Markets in the GCC Region

2020 ◽  
pp. 187-207
Author(s):  
Leisan Safina ◽  
Umar A. Oseni
Keyword(s):  
Capital Markets ◽  
Blockchain Technology ◽  
Securities Settlement

scholarly journals Block Chain Technology Progress and Challenges in Capital Markets

2019 ◽  
Vol 8 (11S) ◽  
pp. 850-852
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Financial Institution ◽  
Prediction Markets ◽  
Financial Assets ◽  
Business Services ◽  
Blockchain Technology ◽  
Huge Impact ◽  
Block Chain ◽  
Made In

The blockchain is anunseen technology that is completelychanging the future of the world economy and achieving grip in the capital markets. Blockchain technology will have huge impact in business transaction and exchange of digital currency between financial institution. The technology is applied to a wide variety of financial fields, including business services, settlement of financial assets, prediction markets and economic businesses. While research has focused on identifying the reasons, Is in Capital Market the implementation of blockchain technology is how far it is acceptable and adapted for the present process with the capital market infrastructure.An effort is made in this paper to know the application and key challenges and implementation of blockchange technology in capital market.

Blockchain-Based Tokens as Financing Instruments

2021 ◽  
pp. 129-141
Author(s):  
Lennart Ante
Keyword(s):  
Capital Markets ◽  
Corporate Financing ◽  
Technological Basis ◽  
Cost Benefits ◽  
Financial Products ◽  
Blockchain Technology ◽  
Coordinated Regulation ◽  
Initial Coin Offerings ◽  
Sme Financing

Blockchain technology represents a technological basis with which existing corporate financing processes can be supplemented. The issuance of digital tokens offers several potential advantages such as tradability, efficiency, automation, and cost benefits compared to traditional financial products. This transformation of financing processes and capital markets can allow small and medium-sized enterprises (SMEs) to access capital markets and at the same time close existing retail investment gaps. In this chapter, the challenges of SME financing are described and blockchain-based financing (initial coin offerings [ICOs] and security token offerings [STOs]) is introduced. The blockchain-based financing mechanisms are compared with conventional forms of financing and potentials and challenges are discussed. In conclusion, it is stated that potential clearly outweighs risk and that the majority of all existing challenges can be tackled through sensible and coordinated regulation.

scholarly journals Decentralizing Finance via Cryptocurrencies and Tokenization of Assets and Peer-to-Peer Platforms

2021 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Hazik Mohamed
Keyword(s):  
Capital Markets ◽  
Self Regulation ◽  
Peer To Peer ◽  
Market Failures ◽  
Short Discussion ◽  
Privacy And Security ◽  
Finance Industry ◽  
Blockchain Technology ◽  
Innovative Solutions ◽  
Digital Money

The rationale behind this research is to demonstrate the tokenization effects of the blockchain on all types of assets, and how blockchain technology might improve the way we view digital exchange and use digital money. The finance industry is progressing towards innovative solutions, capable of dealing with traditional problems and of increasing efficiency, sustainability and accountability. This progression may also address market failures within the economy. In our conceptual chapter, we provide a short discussion of the decentralization of finance and where we are today. We begin with the fundamentals of money and the evolution of cryptocurrency issuance from ICOs to STOs then to stablecoins like CBDCs. We then examine the concept of tokenizing various types of assets and deliberate on a conceptualization of a tokenized capital markets trading platform. To clarify tokenization and its benefits, we provide an example on the tokenization concept for agriculture and livestock in raising capital for small farms. Finally, we conclude discussions on concerns for privacy and security which emphasizes on self-governance, self-regulation and cybersecurity measures.

scholarly journals Applicability of Blockchain Technology in Securities Settlement

2021 ◽  
pp. 34-58
Author(s):  
Jānis Bauvars ◽  
Keyword(s):  
Financial Markets ◽  
Theoretical Background ◽  
Practical Implementation ◽  
Architecture Model ◽  
Cross Border ◽  
Blockchain Technology ◽  
Implementation Time ◽  
Expected Benefits ◽  
Central Securities Depositories ◽  
Securities Settlement

Technological advancements are often adopted to financial markets to improve their operations and safety. Blockchain technology has been recognized as one of the potential technologies to be utilized in capital markets. The goal of this article is to evaluate the applicability of using the blockchain technology in securities settlement process. First, the theoretical background of blockchain technology is reviewed and the current financial market infrastructure is examined. Then Central Securities Depositories Regulation and the current securities settlement processes are examined. Blockchain applicability framework designed by Gourisetti, Mylrea and Patangia is applied to assess the blockchain technology’s applicability to securities settlement. The results suggest that blockchain technology can be applied to securities settlement, and the used blockchain type should be a private blockchain with Proof-of-Authority consensus mechanism. A blockchain architecture model, based on a model provided by Zhuang, Chen, Shae and Shyu, and potential node structure for securities settlement are developed, taking into account the existing literature on blockchain technology, financial markets, and Central Securities Depositories Regulation. The proposed blockchain architecture model and node structure are then evaluated against scholar expected benefits and drawbacks of using blockchain for securities settlement and cross-border settlement efficiency. The evaluation reveals that the proposed blockchain technology model can potentially improve some of the current securities settlement issues, such as costly reconciliation and difficult cross-border securities settlement. At the same time, using blockchain technology in securities settlement would be challenging because the practical implementation time would be long and would require market-wide commitment. The main artefacts of this article are the proposed blockchain architecture model and node structure that would allow securities settlement processes to be executed using blockchain technology.

A Securities Settlement Model Using Blockchain Technology for Central Securities Depository

2021 ◽  
pp. 160-198
Author(s):  
Andre P. Calitz ◽  
Jean H. Greyling ◽  
Steve Everett
Keyword(s):  
Conceptual Model ◽  
Third Parties ◽  
Blockchain Technology ◽  
Database Technology ◽  
Trusted Third Parties ◽  
Main Components ◽  
The Cost ◽  
Electronic Messaging ◽  
Central Securities Depositories ◽  
Securities Settlement

Post-trade securities settlements entered the electronic age between 1980 and 2000. The introduction of technologies such as secure electronic messaging, and improvements in database technology, enabled the inception of central securities depositories (CSDs) as trusted third parties or intermediaries within the securities settlements post-trade landscape. The study reported in this chapter has a focus on CSDs and the application of the blockchain technology to securities settlements. The objective is to develop a model for securities settlements using blockchain technology for a CSD, as currently, globally, no CSD has introduced a production-ready blockchain-based solution for securities settlements. A conceptual model was created from the reported literature that was evaluated by international post-trade securities professionals. The findings have resulted in the acceptance of the main components of the model, with a focus on the cost of the solution, and with the identification of prerequisites to such a solution (e.g., legal/regulatory enablement).

Forming Sources of Long-run Growth: How to Understand Them?

2014 ◽  
pp. 4-20 ◽  
Author(s):  
G. Idrisov ◽  
S. Sinelnikov-Murylev
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Policy ◽  
Business Cycle ◽  
Capital Markets ◽  
Productivity Growth ◽  
Government Spending ◽  
Long Run ◽  
Accelerate Growth ◽  
Budget Institutions

The paper analyzes the inconsequence and problems of Russian economic policy to accelerate economic growth. The authors consider three components of growth rate (potential, Russian business cycle and world business cycle components) and conclude that in order to pursue an effective economic policy to accelerate growth, it has to be addressed to the potential (long-run) growth component. The main ingredients of this policy are government spending restructuring and budget institutions reform, labor and capital markets reforms, productivity growth.

Comprehensive Study of Blockchain Technology - Architecture, Consensus and Future Trends

2020 ◽  
pp. 319-325
Author(s):  
Shreya Joshi ◽  
Ms Bhavyaa ◽  
Suhani Gupta ◽  
Lalita Luthra
Keyword(s):  
Internet Of Things ◽  
Product Management ◽  
Future Trends ◽  
Deep Dive ◽  
Record Keeping ◽  
Blockchain Technology ◽  
Healthcare Product ◽  
Core Technology ◽  
Technical Challenges ◽  
Comprehensive Study

Blockchain is considered to be a disruptive core technology. Although many researchers have realized the importance of blockchain, but the research of it is still emerging. It is the record-keeping technology behind bitcoin and is one of the hottest and fastest growing skills in the IT sector today. It serves as an immutable ledger which allows transactions to take place in a decentralized man Blockchain-based applications are rising up, covering numerous fields including finance, healthcare, product management, Internet of Things (IoT), and many more. However, there are still some challenges of blockchain technology such as scalability and security problems which need to be overcome. This paper comprises of a comprehensive study of Blockchain technology. We have included here a deep dive into how blockchains work, its architecture, consensus and various applications. Furthermore, technical challenges are briefly listed.

The Potential Of Blockchain Technology To Change International Mobile Roaming Business Model

2019 ◽  
Vol 5 (1) ◽  
pp. 15-22
Author(s):  
Ardian Thresnantia Atmaja
Keyword(s):  
Business Model ◽  
Current Situation ◽  
Business Value ◽  
Third Party ◽  
Fundamental Aspect ◽  
Clearing House ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Target Architecture ◽  
Architecture Development

The key objectives of this paper is to propose a design implementation of blockchain based on smart contract which have potential to change international mobile roaming business model by eliminating third-party data clearing house (DCH). The analysis method used comparative analysis between current situation and target architecture of international mobile roaming business that commonly used by TOGAF Architecture Development Method. The purposed design of implementation has validated the business value by using Total Cost of Ownership (TCO) calculation. This paper applies the TOGAF approach in order to address architecture gap to evaluate by the enhancement capability that required from these three fundamental aspect which are Business, Technology and Information. With the blockchain smart contract solution able to eliminate the intermediaries Data Clearing House system, which impacted to the business model of international mobile roaming with no more intermediaries fee for call data record (CDR) processing and open up for online billing and settlement among parties. In conclusion the business value of blockchain implementation in the international mobile roaming has been measured using TCO comparison between current situation and target architecture that impacted cost reduction of operational platform is 19%. With this information and understanding the blockchain technology has significant benefit in the international mobile roaming business.

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