Featured Product

    ECB and BoJ Release Report on Distributed Ledger Technology

    September 06, 2017

    ECB and Bank of Japan (BoJ) released the outcome of their joint research on distributed ledger technology (DLT) in a report titled, "Payment systems: liquidity saving mechanisms in a distributed ledger environment." This joint research project called “Stella” was launched in December 2016 and it studies the possible use of DLT for financial market infrastructures.

    Both BoJ and ECB, in their capacity as providers of market infrastructure services, are exploring DLTs. Their joint research is based on experimental work with the technology and contributes to the ongoing broader debate concerning the usability of DLTs for financial market infrastructures. Depending on technological developments and implementation models, this technology could increase efficiency, for example, by facilitating the automation of recordkeeping and streamlining complex processes. The technology could also lead to improvements in safety and resilience to a range of non-financial risks. The key findings of the joint analysis are as follows:

    DLT-based solutions could meet the performance needs of a Real-Time Gross Settlement (RTGS) system. Within the restricted test environment, both average and peak payment traffic consistent with that of BOJ-NET and TARGET2 (the RTGS systems of the two central banks) was processed without difficulty.

    DLT performance is affected by network size and distance between nodes.

    DLT solutions have the potential to strengthen resilience and reliability.

     

    While the test series produced promising results, it should be taken into account that no direct conclusions can be drawn from the test setup with respect to a potential usage in production. Given the relative immaturity of the technology, DLT is not a solution for large-scale applications like BOJ-NET and TARGET2 at this stage of development. A DLT is a set of tools for recording data, such as asset holdings or financial transactions; it allows a network of computers to verify and store updates without a single central management system.

     

    Related Link: Joint Report (PDF)

    Keywords: Europe, Asia Pacific, Japan, PMI, DLT, BOJ-NET, Target2, ECB, BoJ

    Related Articles
    News

    APRA to Transition to Annual Stress Testing of Large Banks in 2020

    APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.

    February 21, 2020 WebPage Regulatory News
    News

    EC Consults on Review of Non-Financial Reporting Directive

    EC is launched a consultation on the review of the Non-Financial Reporting Directive or NFRD (Directive 2014/95/EU, as part of its strategy to strengthen sustainable investment in Europe.

    February 20, 2020 WebPage Regulatory News
    News

    ECB Report on Transfer of Liquidity from EONIA Products to €STR

    ECB published a report on the transfer of liquidity from the cash and derivatives products of the Euro Overnight Index Average (EONIA) to the Euro Short-Term Rate (€STR).

    February 19, 2020 WebPage Regulatory News
    News

    ESRB Publishes Report on Systemic Cyberattacks

    ESRB published a report that explores systemic implications of cyber incidents, such as cyberattacks.

    February 19, 2020 WebPage Regulatory News
    News

    FSB Chair Sets Out Key Deliverables for G20 Presidency of Saudi Arabia

    FSB published a letter from the Chair Randal K. Quarles to the G20 finance ministers and Central Bank governors ahead of the meetings in Riyadh on February 22-23.

    February 19, 2020 WebPage Regulatory News
    News

    CFTC Proposes Rules on Derivative Position Limits and Swap Execution

    CFTC approved a proposed rule on position limits for derivatives and a proposed rule amending requirements for certain Swap Execution Facilities and real-time reporting.

    February 19, 2020 WebPage Regulatory News
    News

    BOJ Deputy Governor Speaks on Interest Rate Benchmark Reform in Japan

    The Deputy Governor of BOJ Masayoshi Amamiya spoke in Tokyo about how Japan should proceed with interest rate benchmark reform over the next two years until the end of 2021, when the discontinuation of LIBOR is expected.

    February 19, 2020 WebPage Regulatory News
    News

    BIS Appoints Heads of Innovation Hubs in Singapore and Switzerland

    BIS announced key personnel appointments to the Innovation Hubs in Singapore and Switzerland.

    February 19, 2020 WebPage Regulatory News
    News

    OSFI Proposes New Benchmark Rate for Qualifying Uninsured Mortgages

    OSFI announced that it is considering a new benchmark rate for determining the minimum qualifying rate for uninsured mortgages.

    February 18, 2020 WebPage Regulatory News
    News

    BIS on Policy Initiatives to Manage Risk Related to Real Estate Market

    The BIS Committee on the Global Financial System prepared a report that documents recent trends in the residential and commercial property prices in over 20 countries, describes key drivers of price developments, and discusses policy initiatives used to manage the associated risks to the economy and financial stability.

    February 18, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4706