Cryptocurrency
New EU Rules Leads UBS Decision To Test Blockchain For Data Reporting
There several different financial companies led by Swiss Bank UBS, that are testing newly developed blockchain platform. The point is to help them comply with newly developed European Union Trade Data that is setting standards in a new way coming in the next year. They are coming with force and preparing to change the way things are done.
Companies like Bitcoin are being underpinned by the newly developed technology. Apparently, there is a shared pool of immutable databases that are maintained through a massive computer network online. There are more stringent requirements over the parts of the markets and the EU rules are being overhauled in order to improve financial market transparency.
The project is intended to help newer participants in the market, work together through the use of the blockchain technology and improve the reports for regulations. There is a massive group behind it, starting with mega corporation Barclays, KBC, Credit Suisse, Reuters and Swiss Stock Exchange. They’re all now testing the Ethereum Blockchain technology to help guarantee data is accurate and meets all requirements of the general consensus.
Ethereum is the second larger cryptocurrency platform and uses a specialized blockchain that is used for app development on a decentralized network. The platform was developed by a 23 year old computer programmer Vitalik Buterin. And many of the bigger companies in the world using Ethereum’s platform, specifically those in the industry consortia – are teaming up to push development to hold to a higher standard. They are also designing new technology that will make it easier for people and enterprises to use the code created by Ethereum in hopes of streamlining more of the processes.
The main point is to come to one common consensus in a non-competitive atmosphere. The reason is, everyone’s data can then be referenced and used to raise standards. This is essential for making trading more effective.
Instead of replacing existing processes within the blockchain, which is currently running on the Microsoft Azure Cloud system. The platform allows financial firms to perform at the highest quality checks using their own data faced against the data of others. Hopefully the move will pilot the way for an expansion that detects any anomalies and helps to resolve them.
Everyone is waiting right now for the new EU Rules to take effect. As of now they are scheduled to begin on January 3rd of 2018. They will require banking reports and a massive amount of data regulator to ensure everything is done safely. Not only that, but they must oblige with the banks as well as financial firms in order to obtain information that is used to identify clients from issuers and other counter-parties of the trades.
One of the key elements needed is a Legal Entity Identifier, which is a unique 20 digit code that is used to connect important information about a legal entity or company to a name or location. It can also be connected to an industry or other form of regulatory data. Any financial groups that in turn use the data, have to get it from clients prior to legally making transactions that need reports made.
The firms will then be able to anonymously give data to the different private blockchains, that will then check for offset anomalies against other entries. Each submission must operate against the same LEI in order to give firms permission to update their entries or submissions.
And new financial institutions have been using blockchain technology as their primary software for developing new and more efficient ways to manage processes that are heavy with data. Proponents say it is ideal for when other parties want access to the data.
They claim that the new use of blockchain technology to solve real world problems is very appealing or the larger companies. The entire process is still in its pilot phase, and set to be finalized at the end of January in the new year.
