Today the Spanish stock exchange Bolsas y Mercados Españoles (BME) and investment company Renta 4 Banco
announced they have completed a test for digitizing certificates used for collateral pledges.
To cover the end-of-day settlement, it’s normal for a central counterparty, in this case BME clearing, to require collateral deposits. In the proof of concept (PoC), instead of exchanging physical certificates, the process was digitized for pledges required to cover Renta 4 Banco customer positions. All parties had access to the data in real-time. The BME says it reduced the duration of the whole process by 80%.
“DLT technology allows us to reduce times drastically and improve the operation and control of the system, providing legal certainty for electronically generated certificates and maintaining privacy and compliance with the General Data Protection Regulation, ” said Berta Ares, head of digital transformation, BME.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
