How Does the Immutability of a Blockchain Record Affect Options Contract Settlement?
Immutability ensures that once the terms of an options contract and its execution (e.g. exercise or expiration) are recorded, they cannot be retrospectively altered. This eliminates disputes over the final state of the contract and provides an auditable trail.
It enhances trust among counterparties by guaranteeing the integrity of the settlement data. This is crucial for regulatory compliance and auditability.
Glossar
Immutability
Provenance ⎊ Immutability within cryptocurrency, options, and derivatives signifies the unalterable record of transaction history and contract terms, crucial for establishing trust and mitigating counterparty risk.
Regulatory Compliance
Framework ⎊ Regulatory compliance involves adhering to the laws, regulations, and guidelines established by governmental and financial oversight bodies.