View all newsletters
Receive our newsletter – data, insights and analysis delivered to you

Barclays, Reuters bet on Ethereum blockchain for MiFID II compliance

MiFID II arrives on the 3rd of January 2018 and the Ethereum based project is planned to be complete at the end of that month.

By Tom Ball

Barclays and Thomson Reuters are two major organisations among a group of others looking to leverage Ethereum smart contracts to achieve MiFID II compliance.

KBC and Credit Suisse are also part of the initiative, aiming to use the cutting edge technology to put a Legal Entity Identified (LEI) in place, a requirement of the directive that arrives on the 3rd of January 2018.

The blockchain technology behind Ethereum smart contracts is expected to be able to enhance the process of carrying out the monumental task of gaining the LEI. The process will require extensive data reconciliation, an undertaking that could be transformed by smart contracts.

Christophe Tummers, Head Service Line Data, UBS, said: “Traditionally, a firm such as ours quality checks data against multiple sources but we do not have a quality baseline against peers. Through using blockchain-inspired smart contracts, the reconciliation of data can happen in almost real-time for all participants, anonymously.”

The process involves a Microsoft Azure backed Ethereum private blockchain and cryptographic concealment is set to be used to guard the LEI data held by the organisations involved in the project. With the regulation landing in early January, the end of that month is the target for the project’s release.

US net neutrality vote threatens internet freedom

 

Content from our partners
Signs your accounting software is no longer fit for your growing business
Incumbent banks must transform at speed, or miss the benefits of open banking
Leverage cloud and expertise to optimise engagements from onboarding to conclusion
8 of the most outrageous tech predictions for 2018

 

JPMorgan, HSBC, AmEx buy into malware defence technology

 

MiFID II is intended to improve safety and efficiency in European Markets, aiming to re-establish confidence among investors following the financial crisis. The directive is a major piece of regulation and everyone within the financial services will be affected by its arrival. In terms of what it can actually enforce, MiFID II can heighten transparency in pricing and tighten standards pertaining to investment products.

Mark Davies, Global Head of RMS Data Services at Thomson Reuters, “MiFID II creates complex data management challenges for businesses, and this initiative presents a unique opportunity for firms to benchmark content alongside their peers before it is used in regulatory reporting.”

Topics in this article: , , , ,
Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU