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Use Of Distributed Ledger Technology For Securities Markets In The EU
Beyoglu, Muhammet (2025) Use Of Distributed Ledger Technology For Securities Markets In The EU.
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| Abstract: | European securities markets currently rely on a multilayered infrastructure of Central Counterparty Clearing Houses (CCPs) and Central Securities Depositories (CSDs) which imposes a standard T+2 settlement cycle (trade date plus two extra days), creates counterparty credit risk, and produces settlement failures. Through qualitative and interdisciplinary literature re- view, this research paper examines whether distributed ledger technology (DLT) can pragmatically improve the efficiency and settlement speed of securities trading in Europe compared to the legacy CCP/CSD framework. With settlement times being reduced from days to nearly instant, post-trade processes becoming streamlined, and costs reduced through minimizing intermediaries, we recognize potential trade-offs in liquidity and compro- mises for regulatory compliance. Additionally, we examine the potential for a hybrid model that leverages the advantages of both models. Finally, we analyze DLT’s compatibility with current EU regulations, namely CSDR, MiCAR, the DLT Pilot Regime, MiFID II, MiFIR, and GDPR. |
| Item Type: | Essay (Bachelor) |
| Faculty: | EEMCS: Electrical Engineering, Mathematics and Computer Science |
| Subject: | 54 computer science |
| Programme: | Computer Science BSc (56964) |
| Link to this item: | https://purl.utwente.nl/essays/107465 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
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