Synechron draws on its extensive knowledge of capital and currency markets and its investment bank system development experience to show you:

• Where blockchain can improve margin management immediately, without waiting for the completion of industry-wide consensus.
• How blockchain can reduce credit and liquidity risks by reducing manual process steps and lengthy collateral exchange cycles.
• How a blockchain-based system can handle the additional transactions due to upcoming regulations.

Reduce Margin Call Effort and Costs

Applying blockchain technology using smart contracts enables a bank to:

Reduce costs

• Automation of the extensive manual intervention required to source and move collateral — telephone calls, emails, papers or proprietary user identification systems.

Resolve disputes faster

• Smart-contract logic built using a private blockchain network ensures minimal to zero disputes. All transactions are validated, and all valid transactions are added once and only once.

Lower risks

• Banks can manage liquidity more effectively by timing cash flows more precisely and deploying collateral more effectively. More efficient operations also reduce settlement risk and human.

Manage higher volumes

• New rules are coming from regulators that have been scrutinizing OTC derivatives trades since the financial crisis. Existing manual processes are expected to choke on an expected 10-fold increase in margin calls for uncleared derivatives contracts.