The start of a post-trade system for derivatives, based on blockchain and designed by The Depository Trust & Clearing Corporation, is delayed for several months because of issues that have been raised by Brexit.
The officials from the US CSD think that the delay, which hasn't mentioned before, is for giving extra time on testing of the revamped trade information warehouse.
A spokesman from the DTCC said that the project is growing well. DLT and cloud development have been formed, and they proceed to carry in-depth industry-wide testing with their clients, merchants and technology providers. However, to guarantee that this technology is going to be performed in a measured, practical and most reliable manner, they've designated supplementary months for testing, to ensure that firms are 100 per cent ready.
Previously the release date matched the week of Brexit, which is slated for October 31.
Everyone has to open up a whole kit of new accounts outside of the UK when Brexit happens. They have to kind of divide their records; there have to be their EU accounts and their UK accounts.
Considering Brexit does happen, organisations have an added set of operational work to do and DTCC wanted to isolate that from going live with TIW.
There're also other timing issues to do with market implementation, including new directions from the Commodity Futures Trading Commission.
DTCC didn't announce an exact date for the re-scheduled release.