Reglators aren’t the only ones who might benefit by moving global financial transactions to a shared, unchangeable ledger, according to one Deutsche Bank analyst.
Investors, too, could be made more secure.
Case in point: last month, Dutch financial regulator AFM briefly, accidentally published private records of short trades going back four years. Among the valuable data about how leading investors were betting against companies, were a number of decisions by legendary investor George Soros.
Had the trading data been stored on a blockchain, however, the leak likely would have never happened, according to the analyst, Jamal Simpson.
Simpson told CoinDesk:
“That was a case where … distributed ledger technology or blockchain technology could have actually stopped that event from happening in the first place.”
As a result of the mistake (which briefly published hundreds of short sells that are required to be reported, but are visible only to the regulator), that information was made public, leading to potentially valuable insight into the investing decisions of a number of investors, including Soros.
While the regulator was quick to remove the data, the potential damage was already done. Among the shorts revealed were bets against multiple Dutch banks and the positions
Read more ... source: CoinDesk
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