Deloitte develops blockchain solution for regulatory purposes

posted almost 6 years ago
Deloitte Luxembourg has developed a proof of concept to address regulatory transaction reporting in a Distributed Ledger Technology (DLT) environment.

Currently, all counterparties involved in trade transactions are required to insure that the details of any derivative contract — OTC or exchange traded — are reported to a trade repository no later than the working day following the contract. Because of that, financial institutions often face challenges relating to data quality, cost of reporting, timing issues and data reconciliation.

In its DLT proof of concept, Deloitte Luxembourg suggests a brand new and innovative process for transaction reporting. The counterparties of the transaction will seal and report their deal using a smart contract, whose terms include all the aspects needed for the transaction reporting. The regulators will be able to control and monitor the transaction data and their daily updates, which are stored in the distributed ledger. Through smart contracts, transaction reporting becomes more transparent, reliable, fast and immutable.
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