How Smart Contracts Can Implement 'Report Once'

6 Pages Posted: 5 Feb 2018

Date Written: September 6, 2017

Abstract

This paper explains the main features of and motivation for the “report once” demonstrator shown at the 2017 Data For Policy conference. It shows how Ethereum smart contracts, based on the semantics and algorithmic representations defined in ACTUS can implement “digital doppelgängers” of financial contracts. The implementation makes use of a private Ethereum blockchain, with smart contracts written in Solidity. The limitations of using ACTUS in a semi real-time scenario are explored, as well as how to overcome these limitations. The major innovation, visualized by the demonstrator, is that compliance reports can be generated in semi real- time, using the information present in the “digital doppelgängers”, residing in the blockchain. The demonstrator supports various use cases, illustrated through the narration of stories. In these stories, Alice, Bob and Eve are contracting parties, Romeo acts as regulator, and the narrator tells the stories. The stories cover trading a Bond, trading an Interest Rate Swap (IRS), the defaulting of a party (i.e., a payment stop), and various types of regulatory reports.

Keywords: report once, smart contracts, blockchain, Ethereum, financial contracts, algorithmic standards, RegTech, digital doppelgänger, supervisory reporting

Suggested Citation

Sel, Marc and Diedrich, Henning and Demeester, Sander and Stieber, Harald, How Smart Contracts Can Implement 'Report Once' (September 6, 2017). Available at SSRN: https://ssrn.com/abstract=3111508 or http://dx.doi.org/10.2139/ssrn.3111508

Henning Diedrich

Independent ( email )

Sander Demeester

Independent ( email )

Harald Stieber

European Commission ( email )

Rue de la Loi 200
Brussels, B-1049
Belgium

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