A new research paper, “Distributed Ledger Technology – An Emerging Consensus on the Buy-Side”, has been published, featuring contributions from RiskFirst. Distributed Ledger Technology (DLT) has the potential to deliver significant value to the asset management space and, using input from Asset Managers, Service Providers, Buy-Side Platform Vendors, Consultants and FinTechs/DL Platform Developers, this paper delivers a comprehensive view of the industry on this innovative technology.
The paper, written by established industry consultants Chris Mills and Dr Ian Hunt – who works as a consultant for RiskFirst – identifies DLT use-cases that could be particularly beneficial to the buy-side – such as rationalised asset registers to eliminate parallel position stores and reduce reconciliations and automation of the management of complex asset life-cycles through “smart contracts”. The paper also examines the importance of innovation on the buy-side, and the benefits that DLT could bring to the industry – including facilitating the transformation of buy-side architectures, promoting real dematerialisation, and delivering cost savings, revenue enhancements and risk reductions.
While the focus of the report is DLT, it was noted that the highest commercial gains for the buy-side will come through the deployment of a combination of new technologies.