How Does a Blockchain’s Shared Ledger Structure Simplify Cross-Border Regulatory Reporting?
Cross-border reporting is complex due to different national regulations and data silos. A shared, immutable ledger provides a single, consistent, and standardized view of all transactions to all authorized regulators simultaneously.
This eliminates the need for firms to manually aggregate, reconcile, and format data for multiple jurisdictions. The standardization of data entry and the real-time access significantly simplify and accelerate the reporting process across borders.
Glossar
Immutable Ledger
Record ⎊ This structure provides an append-only, cryptographically secured history of all financial transactions, including the creation and settlement of derivatives.
Real-Time Access
Execution ⎊ Real-Time Access refers to the instantaneous ability of traders and algorithmic systems to view market data, submit orders, and receive execution confirmations with minimal latency, a necessity for competitive crypto derivatives trading.
Blockchain Technology
Principle ⎊ Blockchain technology operates as a decentralized, distributed, and immutable ledger system designed to record transactions across many computers.
Reporting
Disclosure ⎊ Reporting within cryptocurrency, options trading, and financial derivatives fundamentally concerns the systematic conveyance of information regarding positions, transactions, and risk exposures to regulatory bodies, exchanges, and counterparties.
Shared Ledger Structure
Immutability ⎊ A shared ledger structure provides a single, cryptographically secured source of truth for all derivative transactions, including options and swaps, which is accessible to authorized participants.