Download This PaperOn the Future of Securities Settlement
17 Pages Posted: 27 Mar 2020
Date Written: March 1, 2020
Abstract
Innovative technologies, such as distributed ledgers, allow securities to be issued or represented in a new form known as digital tokens. Such "tokenisation" of securities will alter post-trade clearing and settlement, and could improve efficiency in some dimensions. But the fundamental trade-offs involving credit risk and liquidity remain in a tokenised world. To succeed, tokens will need to interoperate with account-based systems, at least in the interim.
JEL Classification: G1, G15, G23
Suggested Citation: Suggested Citation
Bech, Morten L. and Hancock, Jenny and Rice, Tara and Wadsworth, Amber, On the Future of Securities Settlement (March 1, 2020). BIS Quarterly Review, March 2020, Available at SSRN: https://ssrn.com/abstract=3561195
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