Blockchain smart contracts raise systemic risk concerns
Automated swaps margin payments could exacerbate systemic risks, regulators warn
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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