Global Custodian Clearing and Settlement Issue 2018 | Page 3

[ I N S I D E V I E W | J O E PA R S O N S ] globalcustodian.com EDITORIAL Managing Editor JONATHAN WATKINS Tel: [phone] [email protected] Deputy Editor JOE PARSONS Tel: [phone] [email protected] Special Projects Editor RICHARD SCHWARTZ Tel: [phone] [email protected] Client Relationship Manager BEENISH HUSSAIN Tel: [phone] [email protected] Research & Operations KAREN DELAHOY Tel: [phone] [email protected] Contibutors CHARLES GUBERT, RICHARD MEYER, SARFRAZ THIND DESIGN & PRODUCTION Art Director OLIVIA ROSZKOWSKA Tel: [phone] [email protected] ADVERTISING Advertising Director DALJIT SOKHI Tel: [phone] [email protected] Senior account manager MATTHEW ALDRED Tel: [phone] [email protected] ADRESS 20 Little Britain London, UK EC1A 7DH Tel: [phone] Printed by: Warners Midlands PLC SUBSCRIPTION RATES Global Custodian magazine publishes five issues per year. GlobalCustodian.com publishes daily. Annual subscription: $565 - magazine only; $715 - web only; $890 – package. For more information contact [email protected]. BBQ, beer and blockchain T here are usually a handful of things most people think of when mentioning Aus- tralia. What do you associate with Australia? Is it surfing, good weather, a can of triple X while throwing a prawn on the barbie (I say prawn instead of shrimp as no one in Aus- tralia says shrimp) or perhaps sandpaper for cricketing reasons? Well few would link Australia as the birthplace of some of the revolutionary technol- ogies that have changed how the world interacts. The platform that later became Google Maps was first developed in Sydney in the early 2000s. The core of Wi-Fi technology was founded by CSIRO – an independent Australian federal government agency responsible for scientific research – in the 1990s. And most notably, it was where the dual-flushed toilet was invented. In this spirit of innovation, Australia will be the home for the next landmark moment for post-trade technology. The Australia Securities Exchange (ASX) will replace its eq- uity clearing and settlement system, CHESS, with blockchain technology. The platform will go live in 2021, and the eyes of the post-trade world will be watching how this new system will be rolled out. This certainly is a landmark “Distributed ledger technology moment. Distributed ledger technology (DLT), which has (DLT), which has been talked about been talked about relating to relating to securities services for securities services for years, years, will be rolled out not in a will be rolled out not in a small, localised market but rather one small, localised market but rather of the biggest economies. Our one of the biggest economies.” feature on page 10 looks at how this monumental decision will resonate with other market infrastructures around the world, and how the rest of the clearing industry will respond. In a period of breakthroughs we are also seeing more major developments in DLT, including a Canadian group proving the technology can be used for instantaneous set- tlement, along with developments in securities lending and clearing. Elsewhere, the European post-trade industry celebrated its own milestone, welcom- ing the final wave of the pan-European settlement platform, TARGET2 Securities (T2S) in September 2017. With the platform finally fully rolled out, we take a look at how banks will look to leverage the platform to gain efficiencies in the collateral man- agement space (page 26). Finally, with more and more products moving to a centrally cleared world, we assess how asset managers, hedge funds and pension funds are taking greater steps to migrat- ing their derivatives activity from bilateral trading to cleared trading (page 22) and the reasons behind this. With this Clearing and Settlement Issue hitting the desks alongside Global Custo- dian’s Summer issue, we hope this guidebook will compliment your BBQ, beers and whatever other aspects of your life these tech whizzkids have moved onto blockchain. Global Custodian is owned and produced by Tungsten Publishing Ltd. ©Tungsten Publishing 2018 No part of this publication may be reproduced, in whole or in part, without written permission from the publisher. Joe Parsons Deputy Editor Global Custodian Summer 2018 globalcustodian.com 3