Morgan Stanley Global Finance and Payment Report: Has the chain chain potential released?

For twelve months, existing financial institutions have taken the lead in potential costs and capital gains. Proof of concept surge. We expect a step-by-step change to a smaller, interoperable block chain that is most susceptible to the development of its block chain.n
The report presents five case studies and assesses how much progress has been made in our 10-barrier framework: New York Mellon Bank’s government bond settlement, the Australian Stock Exchange’s “Industrial Scale” concept validation, Singapore Umin Island Project, Raven’s Cross-border Payment Solution and Interactive Ledger Agreement, UBS Group’s Open Bench Coil Test.n
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Four main findings:n
nThe block chain still does not have a real test: early signs suggest that this is a promising technology, but many major issues have not yet been answered and have not yet been tested in a complex, rapidly changing business environment.n
nnBlock chains can be inserted into existing infrastructure to increase flexibility and security: In view of the scalability of block-chain technology and the complexity of existing financial infrastructures, we believe that the best recent use of block-chain technology Is the case of integrating block chains with existing infrastructure. Based on the security and immutability of block chains, block-chain technology provides a solution for financial intermediaries that rely on their reputation for security and resilience.n
nnThe key is to make the block chain social: laws, regulations and business case issues still need to be answered. Different jurisdictions may have different attitudes.n
nnThere are still no killer applications to start the application block chain: many proof of concept are carried out on a global scale, but there are no killer applications that we think can be used to start the block chain application.n
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Two investment conclusions:n
Block chain is a tool to improve efficiency. With the maturity of technology, funds and securities companies will have the opportunity to further reduce the number of employees and operating costs, because the block chain technology is increasingly widely used in clearing and settlement transactions.n
Current financial companies are profitable: As we stated in our May FinancialTech (FinTech) report, we expect the current financial firms to dominate a large number of given acquisitions and funds, which are needed for the chain of chains to be fully of. In our view, this means that it takes longer to achieve scale, which is very beneficial for the current financial company.n
nThe final conclusion: the rapid appreciation of encrypted digital currency makes people have to call our bank and technical team asked. Possible explanations include investors looking for unconfirmed risky assets and seeking technical staff to gain more security. The government is required to further accelerate its development, where prices are regulated.n
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executive Summary n
A year ago, investors and businesses began to benefit from the chain chain; please refer to our Global Financial / FinTech report: Block Chain Banks: Destructive Threats or Tools? (April 20, 2016) and the global exchange: the block chain — is the Australian Stock Exchange to create a brave new world? (June 2, 2016). At that time, there was little evidence of how the new technology would develop in the context of the financial services industry and could even be feasible in small-scale situations. The block chain is now in the stage of development of the conceptual demonstration phase (see Annex 3). In this report, we have investigated the milestones that have been achieved.n
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Block chain – direction, content and how to use?n
Over the past 12 months, we have further driven our idea of ​​how the business model will be developed using the chain chain (see who will profit, existing financial firms or subversive people). In some cases where the market is small or does not exist in the market, we believe that existing financial institutions will drive business solutions that permit chain chains (if the program is effective) and will reduce costs as a goal or make existing processes more Flexible and safe. Our research shows that, as originally expected, most of the proof of concept is focused on the business and related liquidation of the capital market type (we have discussed several of the initiatives in this report). We also show that block chain technology is being developed on a global scale.n
In order to measure the likelihood of success, or in other ways, we have written five case studies based on existing proof of concept. We interviewed the participants and reviewed the published reports. These can be found on page 11 to page 27. Our main findings are a few major impediments to the block chain applications we see, see Annex 1.n
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Investment conclusionn
It is too early to arrive at a specific investment conclusion; however, it is making progress, and we can see the initial progress of the shared infrastructure in the next 12-24 months. Our view is that current financial institutions are often more likely to benefit than new entrants, most likely to see cost-effectiveness or may further increase capital efficiency. In some cases, income income is feasible, but we have initial uncertainty about this. We believe that the sooner the company involved in the chain chain is likely to profit, including the Australian Stock Exchange, UBS, New York Mellon Bank, Northern Trust, Dobu Bank, and JPMorgan Chase). Finally, we note that there are competing validations in the study of the same use cases, such as competitive verification in the Umm Island project in Singapore and the UBS case, or in trade finance coordination. Considering the need for interoperability and adapting to the existing system, it is interesting to see if these different visions are to be kept in the future, or whether we can see a win-win situation.n
Figure 1:n

Summary of case studiesn
Source: Morgan Stanley Researchn
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Who will be a lender, an existing financial company or a subversive subversive?n
Figure 2:n

The block chain can be fully utilized for what is needed for a large number of acquisitions, which means that it will take longer to achieve a wide range of applications and will benefit the current financial company.n
n
Source: Morgan Stanley Researchn
In our financial technology Fintech, a highly challenging report on wealth, we are aware of some of the factors that affect the progress of the improvement and the possibility of changing the success of a company by contrasting with the current company’s hindrance or cooperation. We have evaluated in some cases, through a complete financial technology of subversion or innovation in comparison, to determine which is more suitable for partners and to promote the current company’s business improvement. While there is a big difference in environment, constraints and competition, we have refined the various environmental factors that we consider to be the most important and incorporated into the framework of our challenges. We hope that this will help the industry, investors and companies’ indices through specific Of the financial technology and the current situation of the company combined to maximize the impact and potential. Through our framework to promote the innovation of the chain chain, we believe that the current company as a subversive opponent may be best suited to use this technology in a scalable way to achieve revenue (see Annex 2).n
Figure 3:n

Block line implementation of the timelinen
Source: Morgan Stanley Researchn
2014-16: Assess the value of block chains in financial assetsn
Banks and other financial infrastructure intermediaries (FII), including central trusteeships, exchanges, and technology providers, licensed to assess the potential efficiency, shared, and secure distributed ledger.n
Banking and financial infrastructure intermediaries to form an industry group to discuss opportunities (R3, Linux operating system of the super book base)n
2016-18: Concept Verificationn
Banks and financial infrastructure intermediaries prepare specific assets as case studies for block chainsn
Conceptual validation goal: to assess whether the block chain can scale and reduce costsn
1) Technology is feasible and large scale?n
2) The buyer, the seller, and their third parties (ie lawyers, auditors, regulators) can use very little manpower to verify the transaction and replace the human team.n
3) Can it go beyond the existing technology in terms of performance, cost, speed, scale analysis, etc.?n
Level of concept verification: from the most important to the sub-important assets to dividen
The resources concentrated in the most important assets, the most inefficient processn
Hire a supervisor, a lawyer, an auditorn
2017-20: The emergence of shared infrastructuren
Verified assets far exceed the initial concept validation groupn
Develop interfaces for external usersn
Use the application interfacen
Reduce costs by reducing manpower and increase the interaction of infrastructure costsn
2021-25: Asset Proliferationn
More assets are transferred to the block chainn
Validated validityn
n
So farn
The chain of chains, which are behind Bitcoin and other encrypted digital currencies, broke out in the financial and technical background a few years ago. It is very meaningful to have a parallel financial system (independent of existing infrastructure) based on the establishment of a decentralized ledger, making it possible for current companies to have the currency risk of credit card networks, remittance networks and banks.n
Block chain technology in the context of banking and financial institutions, refers to the general distribution of general ledger technology. It is important that banks need a private, licensed network, rather than an open, low-licensing network. Such as a network that supports Bitcoin.n
Several consortia led by high-market share of existing financial companies have been testing the concept of zone chain technology validation, particularly in the area of ​​securities clearing and settlement. Leaders include the Australian Stock Exchange, Nasdaq, New York Mellon Bank, Northern Trust, Dobu Bank, and Morgan are assessing whether the chain chain can provide cheaper and safer services than existing systems.n
The application of distributed ledgers has been expanded and efforts have been made to assess business cases: whether the benefits outweigh the costs and risks of implementation, especially relative to simpler alternatives, such as incremental updates to old infrastructure.n
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The next step?n
For some applications the concept of validation (such as securities clearing and settlement) and slowing down on other aspects of enthusiasm (buying bit currency).n
We expect block chains to be applied in a wave-like manner in the form of distinction between asset classes. Mature conceptual argument for the asset class is:n
n1. Mature traditional processes that are hindered by development and are inefficient are likely to be disintegrated (for example, the management of private equity funds in Northern Trust);n
2. Market share is concentrated in the current company can effectively guide the concept of verification work (ie, New York Mellon US fiscal bond settlement, the Australian Stock Exchange stock settlement);n
3. Non-mobile markets (such as SME Securities Clearing, ASEAN Government Bonds) or currently non-existent markets (for example, in emerging markets via mobile wallet between international asset transfers, nyiax markets through contracts in the United States).n
nIt is likely that existing financial companies will realize the application of certain forms of block chain technology. Taking into account the needs of a large number of collaboration, we expect it may take several years to replace the existing back office function / in the use of the asset category can save a lot of cost.n
There is a potential application that includes a portion of the Network Security Toolkit for the escalating network security risks, such as block-chain technology, which is hard to attack by hackers.n
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Artificial Intelligence and Block Chainsn
In the past few years, AI (Artificial Intelligence) and block chains have become fashionable terms. We can not help but ask whether they really should not be competitors, or whether they can complement each other.n
The core intent of the chain as a concept is to create a record whose accuracy and reliability are irrefutable. But as with other things in life, absolute self-confidence is costly: exponential growth calculations and bandwidth requirements, at least in terms of linear growth in storage requirements, significant security and privacy issues, and all of these costs are preloaded (Creating a free sharing incentive mechanism), with long-term returns making maintenance costs down.n
On the other hand, artificial intelligence can actually calculate the probability of accuracy and reliability in order to improve trust – in the long run, 99.9% and 100% of the reliability of economic differences between it? Better data, more computing power and greater bandwidth, should be able to improve and improve trust. Increasing the probability of calculation can achieve the decline in the cost of Moore’s Law, and the investment is based on an ad hoc basis. Investments and improvements can be done iteratively so that there is a clearer path and time to repay.n
We have seen the probabilistic approach to transaction security and have seen great success in traditional payment networks such as Visa and MasterCard. On the other hand, these payment networks have been able to keep fraud losses at a low level by improving post-trades assessment. Even if the newcomer Square has been able to control the loss of less than 10bps, or even give up the acceptance of credit and debit cards – they will actually reveal the reader, they do not need credit check (for personal), or other person / account verification, is still valid To control the business / consumer fraud. We believe that Moore’s Law and improved data analysis can reduce these losses.n
Therefore, our problem is: artificial intelligence can cooperate with the use of things networking, cloud computing, large data, all the current popular new things to improve the application of the block chain?n
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12 months since the block chain – direction, content and how to use?n
The headlines of the chain chains have been on the rise.n
Although the block chain or distributed accounting technology has been around for many years, it is really becoming more popular in the mainstream, but in the past 12 months, a number of mainstream financial service providers have discussed the feasibility of A series of proof experiments. As shown in Figure 6n
Block chains have been frequently mentioned in the company’s documents since the beginning of 2016.n
Further analysis highlights the advantages of capital market-oriented business interests, the block chain in the company’s documents mentioned that 63% of the group from the capital market concerns. From the regional point of view, North America has mentioned the most, but the block chain has been the attention of the global community.n
Figure 4:n
The block chain has been repeatedly mentioned in major news and corporate documentsn

Source: Alphasense (British Gas Sensor Company), Morgan Stanley Researchn
Figure 5:

Telecom giant KDDI joined the enterprise ethercom federation


nnAt present, the Japanese telecom giant KDDI has also become a member, will cooperate with the Japanese venture company to develop a smart contract concept verification, hoping to test this technology to improve the potential for payment. At the same time, KDDI also revealed that the study of artificial intelligence and Internet of Things and other emerging technologies, showing its determination to achieve technological breakthroughs.n
nTranslated by: Inan
Japan Telecom Group KDDI company has joined the enterprise ether square federation (EEA).n
KDDI ranked No. 219 in the Fortune Global 500 list, and it said it was working with Japanese start-up company Couger to build a smart contract concept validation through an enterprise-centric technology developed by the APF Alliance. KDDI’s work on the block chain will also include collaboration with Trinity-Arts and Kentauros Works, a chain-chain start-up company.n
KDDI is the newest addition to EEA, which was formed in February and is supported by companies such as BP, JPMorgan and Microsoft.n
KDDI indicates how the plan is used to improve the payment between companies using smart blocks based on block chains (code segments that are automatically executed when certain conditions are met).n
The company explained:n
n”This concept proves that the chain of chains used by the existing business will be validated by the business, technical issues and advantages of open services on the platform, including non-financial interactions and collaboration with the services of the partner companies Of the smart contract. “n
nThe test will also include the use of mobile phone repair services, will use smart contracts to determine the cost of mobile phone repair, second-hand market, mobile phone costs and whether there are other factors in the cost.n
According to its announcement, KDDI also plans to explore how technology such as artificial intelligence and networking will help develop “next-generation service platforms”.n

Bank of America regulators open national license


nnIn the event that a new generation of banks was likely to carry out Bitcoin and other encrypted money business, the US Treasury Acting Monetary Authority was publicly expressed in an event organized by the Federal Reserve Bank of Philadelphia on Thursday. He expects the company to be awarded a “Financial Technology License” in the future, thus simplifying the way in which entrepreneurs start their businesses across the state. But nevertheless, Noreika is still cautious about whether these companies will eventually be approved.n
nTranslation: Clovern
US Treasury Department of monetary supervision of the person in charge that he was a new generation of banks are likely to carry out Bitcoin and other encryption money business expressed optimism.n
Keith Noreika, the new head of the agency responsible for overseeing all state banking, said in a campaign hosted by the Philadelphia Federal Reserve on Thursday that he expects the company to be issued a “Financial Technology License” Licenses are designed to simplify the way businesses start business across states.n
At present, Bitcoin and traditional fund transfer agencies need to meet the complex network of all 50 state regulatory systems in the United States, industry advocates believe that this increases the market access costs of start-ups, thus greatly limiting the development of such enterprises Then
But Noreika is cautious about the opportunities for approval of these companies, even though they are open to franchise licenses.n
He said to the participants:n
n”I do not object to the fact that these companies come to [the Monetary Authority] to understand the importance of the franchise license to them, but this is a long process, and these companies have to go through this process, and even if you have the opportunity to obtain a license, Does not mean you will be approved. “n
nNoreika is a long-time lawyer in the banking business, in May this year by Donald Trump (Donald Trump) President appointed as the agent of monetary supervision. During the transition, he inherited the financial technology license scheme proposed by his predecessor, Thomas J. Curry, and Thomas J. Curry disclosed last year that he wanted to create a federal government license to replace the different currency transfer agencies in the states.n
The US Monetary Authority was founded in 1863 to help create a national currency that replaces state-level currencies that are gaining a foothold.n
Noreika noted the Fed’s current responsibility for overseeing the US currency, and he was very enthusiastic about expressing willingness to listen to innovative ideas and was willing to help create an environment that could promote innovation and flourish.n
He said:n
n”I think that as a government official, my position is not to reject anything, or any idea, that any American who wants to seek help from the government and make a petition to benefit.”n
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Prudent optimismn
In general, Noreika made this comment after several hours of discussion by a panel, but the group discussion did not mention any encrypted currency or block chain technology. But at the time of his presentation, he presented the results of the three research papers on the subject, after which everything could change immediately.n
Evangelos Benos, an economist at the Bank of England’s Bank of England, shared his views on Norwich’s cautious optimism, and he also explored his last month’s report entitled “Securities Settlement of Classified Bibliography Technology Learn “the article.n
In his speech, Benos elaborated on the benefits that he thought the securities clearing platform could use distributed censorship techniques. All in all, he said that although the initial cost of energizing this concept could be high, the potential scale of the platform that had been created could be enormous.n
He said: “Their cost function may be very small, or may be zero.” And added:n
n”This means that their average costs will be reduced, and I think it is important because it implies that this form of securities settlement network may not be economically limited.”n
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“Hot potato”n
But not everyone is so optimistic. A representative inside the Fed is particularly bearish.n
Earlier as “The Law of One Bitcoin Price”, published earlier this year, Asani Sarkar, vice president of research and statistics at the Federal Reserve Bank of New York, introduced what he said as a success to show the limitations of encrypted currency.n
Specifically, he argues that while the transactions between encrypted currencies are simple and quick, the conversion of this type of asset into French or the currency of the type of asset would drag the economy and create risks. Thus, Sarkar said that some banks that have business dealings with encrypted money companies have stopped doing this.n
In his view, in order to maintain contact with the traditional economy, encryption money companies must accept the need to transfer between one another bank:n
n”The bitter currency exchange is done to keep this hot potato.”n

Well-known film producers will direct block-block movies


nnOn the map: SingularDTV, based on the production and distribution platform of the Ether Square, has launched a block-chain movie project, and Alex Winter, a well-known documentary producer, will direct the film. Winter’s extensive professional experience and interest in technology make it the most suitable candidate for the project. He also said that the interesting and complex experience of the block chain will be displayed in an entertaining way, so that the public to further understand the technology and eliminate some misunderstanding.n
nTranslated by: Inan
n
The story of the block chainn
There is not much video of the block chain, but the technology is much more complicated than the rough two-minute animation.n
IBM and Microsoft and other large companies interested in the block chain so that it has received many mainstream attention, but in fact it has been for ten years. It became interesting and complicated in 2017 to become a center story.n
Fortunately, the filmmaker Alex Winter took on the difficult task of describing the story.n
Winter is not a new face in the entertainment industry. He started his career as an actor and starred in some popular films. Then he was behind the scenes and directed several award-winning narrative documentaries. His recent work reflects his interest in going to the center and the Internet-based community. His two documentaries, Downloaded and Deep Web, are centered on these topics. His next project, Untitled Blockchain Film, will focus on exploring the chain chain machines and their potential to change the world.n
Winter in an interview with Futurism explained:n
n”The film is an opportunity to explore the future: where we are, where we are going and where this is crazy, dangerous and exciting world, especially its part of the chain and encryption areas.”n
nFor this project, Winter will travel to all over the world to interview investors and innovators who play an important role in the chain and de-centric evolution. He will also look for those who use this technology to solve important real-world problems (such as global hunger and income inequality).n
Winter pointed out that since the late 1980s, he has been studying the rise of cryptography and its impact on global culture. But he was excited about the film to make it come into contact with things. Winter said: “Every movie is my discovery and lost journey, which is why I like the film.”n
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Redefined industryn
Winter The subject of this new documentary is not the only element of its cutting edge, and this project is forward-looking from video-assisted to open-ended. With the help of SingularDTV, EnTech will make the film with Futurism Studios (a wholly owned subsidiary of Futurism LLC).n
SingularDTV’s ether-based production and distribution platform, using block-chain technology, provides film producers and artists with everything they need to implement the project.n
Sing Jackson, president of SingularDTV Entertainment, told Futurism:n
n”We are creating an ecosystem for artists and creators in the entertainment industry to carry out all activities – raising money to promote their own projects and leasing equipment. We are developing different applications that will provide artists with all the support from development to publication “n
nFuturism Studios president Geoff Clark pointed out that the block chain technology is currently in this critical moment makes its film production is very exciting. “We are hard to redesign our financing and distribution model to ensure a more equitable and sustainable future.I believe that the block chain represents the next evolution of content creation and we are pleased to be working with top technical experts And creative people to work together to achieve this vision.n
“Untitled block chain movie” is scheduled to be released in the spring of 2018, is SingularDTV original works of the first project. Jackson said she was happy that Winter could direct the film. she says:n
n”His experience made him the right person for the project, and he fully understood the different ways to explore the new technology, and it was a surprise that he could direct the film.n
nWinter hopes that the film will eliminate some public misunderstanding of the block chain, but like his previous work, he will be in this project in the entertainment and education together. Winter said:n
n”I want the audience to have a better understanding of this seemingly chaotic and puzzling world.I took the movie, not the news or the entertainment, so I wanted the audience to feel like a good story.”n

Reuters: South Korean government bans ICO form of financing activities


nnHong Kong financial regulators issued a statement saying it would ban all forms of ICO financing activities, and will strictly control and monitor the virtual currency transactions. The statement also said that the financial institutions involved in the issuance of ICO and any party will be “severely punished”, but the statement did not specify the details of these penalties. The statement also states that the move does not mean that the government defaults to accept virtual currency transactions as part of the country’s financial system. Following the United States and China, South Korea also began to ICO to take strict regulatory measures.n
nTranslation: Clovern
Seoul (Reuters) – Today, South Korean financial regulators have said they will ban the issuance of various forms of virtual currency financing, after the Chinese government has just adopted a similar regulatory approach to the ICO financing model.n
The Korea Finance Committee said it would ban all kinds of first-time digital currency issuance (ICO) activities, while virtual currency transactions also need to be strictly controlled and monitored.n
The regulator issued a statement after meeting with the Ministry of Finance, the Bank of Korea and the State Administration of Taxation,n
n”At present, the activities of financing through the ICO are on the rise, and it is estimated that the ICO activities in Korea are also increasing.”n
nThe statement also adds that financial institutions and any party involved in the issuance of ICO will be subject to “severe penalties”, but the statement does not specify the details of these penalties.n
As a result of the Government’s belief that there is a high risk of financial fraud in ICO activities, it has decided to ban the ICO financing tool. The decision, similar to the recent announcement in the United States and China, suggests that the growing volume of encrypted currency trading is worrisome.n
The announcement also underscores that Friday’s announcement does not mean that the government’s default to accept virtual currency trading is part of the country’s financial system, and that the agency will continue to monitor the market to see if additional regulation is needed.n

Accenture “editable block chain” technology is patented


nnAdventure commentary: Accenture is developing a block-chain technology to obtain a patent. The technology is a permissible chain that allows parties to change data if necessary, focusing on how to correct when an error occurs. Accenture believes that this technology is conducive to making the block chain more mature, but also intention to open the source in accordance with the requirements of the technology, so that it can help more people who need it.n
nTranslated by: Inan
Accenture has been granted a patent for its “editable block chain” development.n
Accenture announced for the first time last year that it wanted to create a license chain that would allow parties to change their data in the event of an error or fraud. The move sparked criticism from some observers, some of whom questioned the need for distributed databases in addition to tamper-resistant features.n
However, its complete patent application details how the system works in practice. The secret of the control key may be shared by one or more parties. In some cases, multiple individuals may have a secret part, which means that access to the account needs to be approved by the entire group.n
David Treat, Accenture’s block chain practice general manager, said the company’s work on the concept of editable block chains “focused on solving the challenges of repairing at the time of error”, thus helping technology to mature.n
He told CoinDesk:n
n”This invention adds a series of options, especially for the choice of online data structures, we are excited about the adoption of patent applications, and our overall goal is to use DLT innovation to enable the technology to be used for enterprise IT.”n
nTreat said that this technology is still in the development stage, need to continue to “improve the prototype.” He also suggested that the company may eventually open source the technology.n
“There are a lot of people who are interested in this industry, and some require us to open source, and we are thinking about that,” he said.n

Japan issued licenses for 11 Bitcoin exchanges


nnWhen the Japanese Finance Department asked all local digital currency exchanges to register with the authorities, the implementation of the plan has now entered a new stage, there are 11 exchanges through the Financial Department of the audit, the successful operation of the license. Japan’s initiatives are relatively rare in the context of the current digital monetary regulatory environment in Asia, and its regulators and exchanges have expressed the hope that this will promote the healthy development of the industry in this way.n
nTranslated by: Inan
The Japan Financial Services Office (FSA) issued an operating license for 11 Bitcoin exchanges.n
The FSA confirmed the move in a September 29 announcement. Prior to this, a payment service amendment had been issued requiring all digital currency exchanges to be registered with the authorities by the end of September. The bill was passed in April, recognizing that the Bitcoin was a legal form of payment and provided security guidance for the relevant exchange.n
This license application provides a number of operational requirements for the exchange, including high standards of network security, customer account isolation and customer identity verification.n
There are still 17 applications are still under review, and another 12 companies have been closed in accordance with the new regulations.n
The local digital currency exchange Quoine is one of the 11 licensed companies that said in a press release that it will work with regulators to “realize the healthy development of the digital money industry in Japan and around the world.”n
A FSA executive said earlier this week that it intends to work with exchanges to promote “sound market development.”n
Japan’s digital currency regulation is very forward-looking. Legislators have said it was the revelation that the collapse of the Mt Gox in the local spot currency exchange in 2014 resulted in millions of dollars in customer money losses.n
At present, the digital money field has experienced a more extensive regulatory change. Earlier this month, China completely banned the coinage or ICO financing, its domestic exchange also followed the suspension of the transaction.n
South Korea has just announced ICO illegal, and will tighten regulatory policy.n

Two new currency futures ETF to be approved by the US Securities and Exchange Commission


nnRecently, Maryland’s ProShares Capital Management Company filed an application with the Securities and Exchange Commission (SEC) to create two dollar funds, indirectly through derivatives contracts to provide access to the encrypted currency. The application document also mentions that derivatives markets related to Bitcoin are still in the early stages of development, but it is undeniable that the Bitcoin derivatives market has begun to shape.n
nTranslation: Clovern
The Exchange Exchange Fund (ETF), which is located in Maryland, has filed an application to launch two new premium currency futures products.n
According to the S-1 form filed on September 27, ProShares Capital Management wants to create two Bitcoin funds: ProShares Bitcoin ETF and ProShares short bit currency ETF. Like other ETFs submitted in recent months, ProShares does not intend to purchase the encrypted currency directly, but instead, the company intends to indirectly provide access to the encrypted currency through derivative contracts.n
According to the documents submitted, ProShares target the largest total issue price of $ 1 million, of which $ 25 per share, and plans to be listed on the NYSE Arca Exchange.n
The document mentions that derivatives markets related to Bitcoin are still in the embryonic stage.n
The company said in the application documents:n
n”It is not easy to guarantee whether the spot currency futures contract will develop or maintain a certain degree of activity,” he said.n
nNevertheless, it can not be denied that the Bitcoin derivatives market has begun to shape.n
LedgerX and other start-up companies and CBOE options exchange operators have turned to the public interest in these products. On the other hand, the main players in the market, such as the Chicago Mercantile Exchange (CME), are still on the sidelines, at least for the time being, even though they have already carried out intellectual property related work on encrypted currency derivatives.n

SEC Strike VanEck Bitcoin ETF Project


nnIn the United States New York currency management company VanEck applied for the creation of VanEck Vectors Bitcoin Strategy ETF (Bitcoin strategic ETF), used to invest in the “US exchange trading Bitcoin derivatives, joint investment vehicles, exchange trading products to provide Bitcoin channel product”. But the news shows that the SFC has determined not to review the underlying investment instrument does not exist in the fund.n
nTranslation: Annie_Xun
Public records show that the US Securities and Futures Commission (SEC) officials veto the spot currency futures ETF (exchange-traded funds) listing requirements.n
Last month CoinDesk reports that VanEck, a New York-based currency management company, has applied for the creation of the VanEck Vectors Bitcoin Strategy ETF, which is used to invest in “US exchange trades, coin investment instruments, exchange trading instruments, etc. Channel products “. This is a financial product created by investors to collect encrypted money indirectly.n
However, the Division of Investment Management received a letter that VanEck Assistant Counsel Matthew Babinsky said the agency officials would not consider reviewing the company’s request because the currency markets such as Bitcoin had just started.n
So VanEck intends to withdraw (at least for now) the application filed in August:n
The letter said:n
n”The trust fund mentions on the telephone of the agency staff on 20 September 2017 that the Commission’s policy is that the policy of the SFC is not a review of the main investment objectives without the underlying tools of the fund, which means that the amendment must be withdrawn until the Fund intends The standard tool for investment is available. “n

Australia’s largest stock exchange on the chain chain replacement CHESS “more and more confident”


nnPost Comment: The Chairman of the Australian Exchange is optimistic about the potential of the block chain technology to replace the existing post-trade settlement solution CHESS. Although the current manual CHESS still meet customer needs, most investors choose to continue to use it, but the Australian Exchange will continue to explore the block chain platform alternative.n
nTranslation: Annie_Xun
The chairman of the largest Australian stock exchange is optimistic about the potential of the block chain technology to replace the existing post-trade settlement solution CHESS.n
The Australian Securities Exchange (ASX) is probably the first large stock exchange in the world to open its willingness to use block-chain technology. CCN reported in 2015, when ASX general manager Elmer Funke Kupper stressed that the block-based platform is an alternative to ASX existing CHESS (Clearing House Electronic Subregister System) an important option. To the center of technology is considered to be the technical upgrade of the “20 years of opportunity.”n
In January 2016, ASX investors were A $ 14.9 million to purchase a 5% stake in Digital Asset, a New York block chain company. ASX said, Digital Asset developed a chain-chain platform will “significantly simplify and accelerate the post-transaction process.” CHESS conducted a 20-month test of the block-chain solution.n
Despite some hurdles, ASX may move the post-transaction settlement process to the block chain, which earned an annual earnings of $ 10 million for ASX, or $ 55 million. With traditional manual CHESS, ASX has become the world’s most profitable large exchange, with a profit forecast of 77% in 2017 and 71% of its closest counterparts.n
In other words, investors want to profit may continue to use CHESS, but ASX is moving forward.n
Rick Holliday-Smith, chairman of ASX, who spoke to investors at the company’s annual meeting,n
n”We are increasingly convinced that the technology will simplify the operation of our market, unlock new efficiency and innovation era.”n
nAnd ASX CEO Dominic Stevens also revealed that ASX has “demonstrated more than 60 distributed book systems or CHESS alternative projects for more than 110 companies and more than 500 participants in the global financial services industry.”n
He stressed that Digital Asset’s development of the block chain solution “real potential for increased market efficiency”:n
n”These are the ones that ensure that ASX is most familiar with the infrastructure needed after the stock market transaction.”n
nASX will decide in December to replace CHESS with a chain-chain platform.n