This book focuses on development of blockchain-based new-generation
financial infrastructures, in which a systematic, complete theoretical
framework is proposed to explore blockchain-based securities trading
platform, central securities depository (CSD), securities settlement
system (SSS), central counterparty (CCP), payment system (PS) and trade
repository (TR). The blockchain-based new FMI has attracted much
attention in the securities industry. At present, the cross-border
depository receipt (DR) business faces a dilemma between efficiency and
security. In this book, the author proposes a blockchain-based new DR
solution, manifesting the potential for using blockchain technology in
the FMI field. In addition, using Hashed Timelock Contract (HTLC) as the
underlying technology in the DR scenario, specific process and
operations are proposed for delivery versus payment (DvP), delivery
versus delivery (DvD) or payment versus payment (PvP) and other
exchange-of-value methods. This book further studies how to carry out
opening positions, end-of-day settlement of margin, forced liquidation
and settlement at maturity, for exchange-traded derivatives, such as
futures and options, under the blockchain-based technological framework.
Blockchain technology not only naturally fits into the decentralized or
non-centralized characteristic of the OTC market but also can
effectively address the pain points and difficulties of the OTC market.
This book provides an in-depth analysis of existing specific issues in
China's bond market, regional equity markets and asset management
market, among other OTC markets, and proposes relevant blockchain-based
solutions. Blockchain technology does not change the public policy
objectives for FMI. The
blockchain-based new FMIs are still subject to compliance, safety and
efficiency requirements. This book provides a comprehensive assessment
of the applicability of the Principles for Financial Market
Infrastructures (PFMI) to them, in particular, analyzes their legal
basis, off-chain governance and system security.
