Implementing a Financial Derivative as Smart Contract
51 Pages Posted: 19 Mar 2019 Last revised: 28 May 2019
Date Written: February 25, 2019
In this note we describe the application of existing smart contract technologies with the aim to construct a new digital representation of a financial derivative contract. We compare several existing DLT based technologies. We provide a detailed description of two separate prototypes which are able to be executed on a centralized and on a DLT platform respectively. Beyond that we highlight some insights on legal aspects as well as on common integration challenges regarding existing process and system landscapes. A very detailed methodological overview of the concept of a smart derivative contract can be found in https://ssrn.com/abstract=3163074.
Keywords: Smart Derivative Contracts, Derivative, Settlement, Distributed Ledger, Blockchain, Code is Law
JEL Classification: G20, K2
Suggested Citation: Suggested Citation