Imagine, the year is 2030. The majority of the world's $400tn1 of financial securities safely sits on digital registers and is processed via services connected to distributed ledger-based networks. While all networks started in a tightly permissioned form with strong governance controls, they were then gradually opened for direct investor and issuer access.
Most financial services providers have upgraded and digitized their offerings. Some still use legacy systems dating back to the early 2000s or before. All of them have found a way to connect their service offerings to these new networks. Clearly, this is now the most efficient way to conduct securities services business.
Any firm connected to a network enjoys on-demand financial services from the best providers with overhead cost mutualised. Inflexible, opaque, and expensive service bundles with single provider risk are passé. Transactional costs have come down by 26-48%2; modern capabilities such as flexible settlement cycles or configurable transaction types are the new standard and counterparty risk has been reduced by 25%3.
Many have completely underestimated how much can change within a decade. Those who recognised the potential early are the big winners today. We are glad you are amongst them.
1 Up from $110tn in 2008 and $220tn in 2018.
2 Transaction cost study from RISE and 15 independent institutional funds, 2017.
3 DTCC projected savings prior to the 2019 move from T+3 to T+2. Similar global savings can be expected from flexibility including a T+0 option.
The DEPOSITORY is our flagship software product for enterprise deployment. Out of the box, it enables a marketplace of financial services that are driven by its embedded digital registers. The DEPOSITORY allows our clients gain efficiencies and upgrade the quality of financial services they deliver to both issuers and investors globally.
The software is operated in a distributed fashion by a network of permissioned financial institutions. Those institutions form a governance body that controls any software upgrade or change of principles in the network.
The register hosts a diamond-copy of ownership and reference data for any digital and traditional security. Configurable governance policies ensure regulatory compliance and quality of any data update.
The marketplace connects existing financial services from regulated institutions. Servicing needs are allocated competitively to providers and inter-firm servicing is streamlined, audited, and follows configurable governance policies.
We deploy the DEPOSITORY in multiple jurisdictions for multiple security types. We have created a flexible engagement model to accommodate different market and client needs. We believe it is vital to fully explore the opportunity and problem set early on. The result is an execution process allowing our clients to move forward with confidence. Our approach follows a stage-gate model enriched with best practises learned across our numerous engagements and implementations:
RISE is committed to help the securities services industry move into the decentralized and digitized era. With our unique mix of securities industry and distributed technology ledger know-how, the RISE conducts original research on the application of these technologies in our industry. Our research covers technical, operational, financial, legal and governance aspects. As well as conducting our own research, we also monitor trends and innovations taking place in the crypto and distributed ledger space.
ENABLING DvP ON DLT
How can we link the cash and securities leg and enabling compliant DvP settlement via distributed ledger environments?
of Dvp on DLT
Buy-side sponsored, bottom up cost analysis of DvP settlement transactions in the worlds most efficient markets.
OF DVP oN DLT
SWIFT sponsored end-to-end test with 7 leading institutions; validates operational data-flow and integration between DLT and legacy IT estate.
SCALING DLT in THE
Technology design to scale distributed ledger solution for custodies assets in the post-trade industry.
CONFIDENTIAL DLT IN THE POST-TRADE INDUSTRY
Technology design for confidential distributed ledger solutions for custodies assets in the post-trade industry
LIQUIDITY in DLT INFRASTRUCTURES
To find our more about this topic contact the RISE advisory team here.
TEAM & ADVISORS
BUSINESS & STRATEGY DEVELOPMENT
OPERATIONS & PROJECTS
Transaction banking veteran from State Street and DB; Successfully developed products in-house & through fintech partnerships.
Former Head of Product Development at State Street Global Services and Deutsche Bank (Transaction Banking).
Former project lead and solution architect at State Street with 10+ years of industry experience.
MARKET DEVELOPMENT & SOFTWARE SALES
Former owner of IT platforms as Head of IT at Société Générale Securities Services UK and Merrill Lynch Europe.
Former senior analyst and developer at CLS. Lead software engineer; MSc in information security and DLT.
Globally responsible for strategy, business development and large transaction development for Financial Markets at IBM.
Charles v. Senatore
CLEARING & EXCHANGE
LEGAL & REGULATORY
Former SEC lawyer, head of risk at Fidelity Investments and Merrill Lynch.
Advises on modernisation of central bank and financial market infrastructure with Granularity Ltd, specialising in cross-border and multi-currency projects.
Former Board Member and CIO at Eurex Exchange (part of Deutsche Börse Group).
CSDS & TRANSFORMATION
Founder of COO Connect and Global Custodian, author and consulting adviser to banks, infrastructures and public bodies.
Former Board Member at Clearstream. Founder of Cappiello Advisory Group, specialising on DLT strategies and operational performance improvements.
Former Managing Director at Bank of New York Mellon, specialist on stock transfer, international depositary receipt operations and development.
Professor of Finance at Oxford University and Partner at OXERA.
Operating Partner of a 2.5bn GBP Growth Capital Firm in the UK.
WILL BLOCKCHAIN DISRUPT THE VENTURE MODEL?
FORMER MD AT BNY MELLON JOINS RISE
COVID-19 ACCELERATES DIGITIZATION
SARAH BILLER JOINS THE BOARD OF RISE FINANCIAL TECHNOLOGIES
VENTURE FUNDING FOR THE DEVELOPMENT OF DEDICATED NETWORKS FOR TOKENIZED AND TRADITIONALLY REGULATED ASSETS
RISE is a distributed technology company based in London and Boston that is led by a group of highly experienced securities services and technology experts.
The group has successfully delivered novel securities services across multiple markets, has in-depth knowledge of industry challenges, and is determined to address those for the benefit of investors, issuers, and their service providers globally.
Want to learn more? Contact us:
RISE Financial Technologies Ltd.
200 Aldersgate Street
EC1A 4HD London