DTCC: DLT able to support more than 100 million trades per day
16 October 2018 New York
Image: Shutterstock
The Depository Trust & Clearing Corporation (DTCC) revealed that for the first time ever, Distributed ledger technology (DLT) is capable of supporting average daily trading volumes in the US equity market of more than 100 million trades per day.
The study, which was conducted by Accenture with support by Digital Asset and R3, proved that DLT could perform at levels necessary to process an entire trading day’s volume at peak rates.
According to the research, this equates to 115,000,000 daily trades or 6,300 trades per second for five continuous hours.
Currently, public blockchains supporting crypto-currencies operate at single or double-digit per second performance.
Until now, this was the only indication of the potential volume that a private DLT might be able to support, DTCC noted.
Additional work will be necessary for DTCC to determine if DLT can meet the resiliency, security, operational needs, and regulatory requirements of its existing clearance and settlement.
Murray Pozmanter, head of clearing agency services at DTCC, said: “We are excited to lead this important work to advance the performance capabilities of DLT and help create new possibilities for leveraging the technology more broadly across financial markets.”
“As an early adopter of DLT, we are encouraged by the results of the study because they prove that the technology’s performance can scale to meet the needs of markets of different sizes and maturity.”
David Treat, managing director, global blockchain lead, Accenture, commented: “This project answered key questions and built serious confidence in blockchain’s ability to drive large-scale transformation.”
“The close collaboration with the DTCC and our alliance partners, Digital Asset and R3, enables us to push DLT performance to new levels against real-world requirements and conditions.”
Rob Palatnick, managing director of IT Architecture at DTCC, added: “DTCC has been actively involved in DLT projects for over three years and during that time, we have seen technology platforms continue to mature, but concerns have loomed around the scalability of DLT.”
“This study is a natural next step in our efforts to advance the use of DLT, and we look forward to continuing to work collaboratively with the industry to identify new opportunities to use the technology to enhance the post-trade process.”
The study, which was conducted by Accenture with support by Digital Asset and R3, proved that DLT could perform at levels necessary to process an entire trading day’s volume at peak rates.
According to the research, this equates to 115,000,000 daily trades or 6,300 trades per second for five continuous hours.
Currently, public blockchains supporting crypto-currencies operate at single or double-digit per second performance.
Until now, this was the only indication of the potential volume that a private DLT might be able to support, DTCC noted.
Additional work will be necessary for DTCC to determine if DLT can meet the resiliency, security, operational needs, and regulatory requirements of its existing clearance and settlement.
Murray Pozmanter, head of clearing agency services at DTCC, said: “We are excited to lead this important work to advance the performance capabilities of DLT and help create new possibilities for leveraging the technology more broadly across financial markets.”
“As an early adopter of DLT, we are encouraged by the results of the study because they prove that the technology’s performance can scale to meet the needs of markets of different sizes and maturity.”
David Treat, managing director, global blockchain lead, Accenture, commented: “This project answered key questions and built serious confidence in blockchain’s ability to drive large-scale transformation.”
“The close collaboration with the DTCC and our alliance partners, Digital Asset and R3, enables us to push DLT performance to new levels against real-world requirements and conditions.”
Rob Palatnick, managing director of IT Architecture at DTCC, added: “DTCC has been actively involved in DLT projects for over three years and during that time, we have seen technology platforms continue to mature, but concerns have loomed around the scalability of DLT.”
“This study is a natural next step in our efforts to advance the use of DLT, and we look forward to continuing to work collaboratively with the industry to identify new opportunities to use the technology to enhance the post-trade process.”
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