It was also a pleasure to catch up with so many people at IDX. I was a little surprised that DLT was not as much at the forefront of the agenda this year....but there is plenty going on!
Another milestone this week for DLT in the commodity markets.
Singapore Diamond Investment Exchange Partners With Kynetix And Everledger To Trial First-Ever Blockchain Verification And Record-Keeping Service For Diamond Trading
(plenty of other wires carried this story - take your pick).
I've also put a paper together on what I think about the governance and adoption issues for DLT. There are so many generalisations out there that I thought it would be good to separate the generalisations and observations. Once these things are agreed, then you can really start to dive down into details and practical realities. The paper is available here. Obviously would love any comments and feedback. More than happy to qualify or justify any of my statements.
FCA DLT Consultation paper. (closes 17/July)
DP17/3: Discussion Paper on distributed ledger technology
ASIC’s Innovation Hub and our approach to regulatory technology
Canada backs off blockchain interbank payment system
Project Jasper: Are Distributed Wholesale Payment Systems Feasible Yet?
Stena bulk’s successful MIT Sloan project with blockchain.
IBM, Natixis and Trafigura team on blockchain platform for oil trades
CIBC, Commerzbank, Credit Suisse, ING and UBS Test Corda for Collateral Lending
Ethical Investing – Whose ethics are we talking about?
..."the options for ethical investing are largely limited to simplistic screening processes for pooled funds, such as blanket bans on firms focussed on profiting from activities such as alcohol, gambling, tobacco and fossil fuels."
...No investor wants to sink their money into a stock that’s worthy but ultimately worthless.
Environmental, Social & Governance (ESG) principles that are at the heart of the United Nations’ Principles of Responsible Investing.
*** I think this is a real opportunity for DLT. e.g. Screening 'Tobacco' companies is one thing, but do we really want to screen alcohol, fossil fuel companies etc. DLT provides a mechanism to evidence best practice in the supply chain, from production through to product placement. Just as alcohol can be consumed responsibly...so too it can be produced responsibly. DLT can add clarity where a blanket screen may not be best either for investors or the environment.
MultiChain 1.0 beta 2 and 2.0 roadmap.
[MultiChain was forked from Bitcoin Core]
...While Ethereum’s “smart contract” paradigm is popular, it has a number of key shortcomings for high-throughput permissioned blockchains. First, smart contracts introduce a global dependency across the blockchain’s entire state, which drastically impairs concurrency and performance. Second, smart contracts cannot stop incorrect transactions from being embedded in a blockchain, but only prevent those transactions from updating the blockchain database’s state....
What is also interesting are some of the Multichain partners (including): Accenture, Boston Consulting Group and pwc.
'Top 10' Blockchains Report Concludes: Now is the Time to Pivot
Platforms selected based on their potential to more quickly and transparently conduct post-trade securities settlement include Axoni, Chain, Digital Asset, Ethereum, Hyperledger, Nasdaq, R3, Setl, Symbiont and tØ.
Corp-up and venture builder models
“Corporate” and “Start-up”: big business in banking and insurance is coming after the start-up world with capital and intent – a powerful combination that we should not ignore.
Venture Builder: where corporates are building multiple challenger ventures on the outside, away from the internal corporate antibodies, driven by a team of seasoned entrepreneurs who have done it before.
Market StructureEuropean Commission - Press release
Mergers: Commission blocks proposed merger between Deutsche Börse and London Stock Exchange
FCA: Investment managers still failing to ensure effective oversight of best execution
We were concerned to find that most firms had failed to take on board the findings of our thematic review. The pace of change in improving client outcomes in best execution was slow, with few firms having a cohesive strategy for improving client outcomes.
Could the handwriting be on the wall for Bloomberg Tradebook?
BrexitThe €60 billion Brexit bill: how to disentangle Britain from the EU budget.
Other BitsHow Machines Make Sense of Big Data: an Introduction to Clustering Algorithms
A closer look at 3 clustering algos.
*** I found this article quite insightful.
London has had a tough couple of weeks. But something about the British spirit just shines through:
e.g's Terrorism to the British is...
- Queue jumping
- Changes to your favourite biscuit
- The announcement every British football fan fears:..."and so we go to Penalties"...
- Debating how to pronounce words in your own language:..."I pronounce scone as scone"