Cboe Clear Europe participates in ECB experiment on DLT
19 July 2024 Europe
Image: stock.adobe.com/Justlight
Cboe Clear Europe has participated in the Eurosystem’s testing of new technologies for the settlement of wholesale transactions in central bank money.
These experiments aim to explore the potential of distributed ledger technology (DLT) and how it could improve efficiency for clearing and settlement.
Cboe Clear Europe, alongside ABN Amro Clearing Bank, explored the use of central bank digital currency (CBDC) as collateral. The firms are aiming to test the viability of the solution for margin calls outside the opening hours of TARGET, the EU’s cash settlement system.
The experiments demonstrated the use of tokenised cash collateral could be used as a potential solution to the problem of end-of-day collateral calls.
Vikesh Patel, president of Cboe Clear Europe, says: “As Europe’s largest and most-connected pan-European clearing house, our core mission has always been to advance Europe’s post-trade landscape.”
These experiments aim to explore the potential of distributed ledger technology (DLT) and how it could improve efficiency for clearing and settlement.
Cboe Clear Europe, alongside ABN Amro Clearing Bank, explored the use of central bank digital currency (CBDC) as collateral. The firms are aiming to test the viability of the solution for margin calls outside the opening hours of TARGET, the EU’s cash settlement system.
The experiments demonstrated the use of tokenised cash collateral could be used as a potential solution to the problem of end-of-day collateral calls.
Vikesh Patel, president of Cboe Clear Europe, says: “As Europe’s largest and most-connected pan-European clearing house, our core mission has always been to advance Europe’s post-trade landscape.”
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