Regulators have raised concerns about the use of blockchain technology to automate the exchange of margin on derivatives transactions.
Distributed ledger technology (DLT) has been touted as a replacement for existing margin and collateral processes in the derivatives industry, which has struggled to cope with new rules on margining non-cleared trades.
But regulators say smart contracts – software developed for DLT systems that can automate post-trade lifecycle events, such as margin calls –
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