© finoryx 2015

Blockchain & Capital Markets A cost-reduction opportunity ?

Olivier Roucloux

3rd November 2015

Welcome

Thanks to

Introduction

Are Capital Markets complex and expensive ?

A bit costly but efficient

Supports high volumes

Prevent systemic riskAverage 20 messages exchanged per trade

So, why looking at the Blockchain ???

Raise of Alternative Finance

Crowdfunding becomes very popular, volume grows

But …

Needs financial intermediary

Use traditional unsuitable post-trade mechanism

« lending » model (when it’s not gift)

No shares (or rarely bonds) issuance

No dividend distribution, no vote

More expectationsInvestors want:

• Regular Returns

• Transparency & Trust

• Speed and Simplicity

• Involvement

Key Drivers

The Move is On…

Potential Solution ?

Let’s Imagine …

A “proprietary” blockchain

Launched by a major infrastructure, group of banks, …

Configured using recommendation of market representatives working groups and committees

Mined by regulated market participants

Using business standards edited by most recognized bodies, implemented within autonomous smart contracts

Accessible to all but with different access rights if you are an individual, a bank, a regulator, …

It could look like …

Market Makers & brokers

Exchange & CSD

Custodian

Central

BankRegulator

CustodianCustodian

Issuer

Crowd funding platform

A single safe source of information (no reconciliation needed)

Direct holding transparent model (direct communication between actors)

Enforced competition between custodian banks on added value services

Facilitated exchange of assets thru liquid stock exchanges

3rd Ptyservice

providers

CSD

(CCP?)

Cost effectiveness

Question ?

Contact details

Olivier RouclouxVision & Product Strategy

Mobile : +32.470 / 24 12 04

olivier @ finoryx.com

Add me,

mention this conference

And ask questions …