Can block chains subvert asset management?


nnnMoody’s recently released a report that revealed that Natixis Asset Management was testing and evaluating a new asset management tool driven by block chains. Moody’s analysts believe that this behavior can take advantage of new technologies to streamline management processes and save time and costs, helping to improve asset management companies’ credit, but also points out that it takes time to embrace new technologies and that large companies are more likely to benefit from it.n
nnTranslated by: Inan
nAccording to a recent Moody’s report, Natixis Asset Management is testing a new asset management tool driven by block chains in Europe, potentially building a more efficient distribution platform. This new technology simplifies the management process and reduces execution time.n
nAt present, investors buy funds from their asset managers, consultants and brokers through the Internet. Orders to be dealt with one by one, with the dealers, registrars, transfer agents and clearing house for important communication. And the “order delivery” driven by the block chain can execute multiple orders at the same time. A valuation could save about 1 billion euros per year for Luxembourg’s fund market.n
nMoody’s analyst Tiziano Olivia said it would help improve the assets of the asset management company, but also said that the larger participants will get the most benefit. Olivia wrote in a July 4 report:n
nnLarge asset management companies are in a better position to get more benefits from the block chain platform. This is because the technology requires operational support and dedicated resources. The technology also needs to be further developed to handle hundreds of orders in less time. Dealing with large amounts of information requires a highly developed modern IT infrastructure.n
nnnSince it takes time to accommodate the block chain, the enterprise must run the parallel system in the transition phase before it is completely switched to the new technology. At the same time, enterprises in the test block chain also need to consider the development of regulatory framework. While regulators have shown interest in the chain chain, the regulatory framework is still new and is generally fragmented across jurisdictions.n

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