Masters: blockchain could ease margin headaches

Margining non-cleared derivatives a “massively under-optimised space”, says Digital Asset chief

Blockchain graphic

Distributed ledger technology could simplify the process of exchanging initial and variation margin for non-cleared derivatives, according to Blythe Masters, chief executive of Digital Asset Holdings.

Asked about applications for the technology in the derivatives industry, Masters said it could be used to overhaul existing “margin and collateral” processes, which have struggled to cope with new rules on margining non-cleared trades.  

“The process of margining and committing collateral to marg