Euro Clearing of DERIVATIVES
You just know when things are about to come to ahead. They begin to make their way on to Mainstream News..!!
For the last +4 years that I have been championing for the adoption of BLOCKCHAIN Technology to the Clearing of Financial DERIVATIVES and not once have I ever heard the words "DERIVATIVES" mentioned on Mainstream News.
However this changed today and the Mainstream News all of a sudden are now "Financial Experts" on the subject.
BREXIT
As the BREXIT talks with the EU begin it is clear that DERIVATIVES and EURO CLEARING of DERIVATIVES will both be at the top the agenda.
So what does EURO CLEARING of DERIVATIVES mean?
EURO CLEARING of DERIVATIVES
For the ones unfamiliar with Euro Clearing of Derivatives it is a +€800 billion / day industry that London does not want to loose.
The European Union wants companies that are set up in London to relocate to Europe and take with them this business.
This is something that the U.K. and the City of London is fighting to retain.
So what is Euro Clearing of Derivatives?
It is the clearing of Financial Derivatives and Contracts between two parties and include, but not limited to: Commodities, Currencies, Bonds, Interest Rates, Insurances, Stocks, Equities etc...
Essentially these Financial Instruments are cleared by Clearing Houses who act as middlemen sitting between the two parties and move billions of euros in transactions.
Effectively they are managing and trading the risk should one side default, by sitting in the middle to ensure a smooth transaction.
In the U.K. there are predominately three Clearing Houses:
London Clearing House (LCH)
London Metal Exchange
CME Group
The U.K. boasts the largest OTC Foreign Exchange and Interest Derivatives Market in the World with over €800 billion of transactions traded in a day.
This is not not small potato, this is big league stuff.!!
BREXIT & EUROPEAN UNION
So why does all this matter so much all of a sudden?
The story we are being told by Mainstream News is that the Clearing of these Derivatives will continue on the antiquated and obsolete systems that have morphed from the systems of the 1970's and that the EU wants the oversight regulatory body moved to Europe.
Obviously the U.K. and the City of London are fighting to keep this business in London and it is being used as a Political Hammer to bash over the U.K. Voters to remain in the EU.
BLOCKCHAIN TECHNOLOGY
One thing that is not mentioned though in all the garbage that is being pumped out by Mainstream Media is that the smart ones are one step ahead.
BLOCKCHAIN Technology is set to play a HUGE ROLE in the new Global Financial System and will sit at the core of the System.
Acting as the beating heart, BLOCKCHAIN Technology is set to replace Clearing Houses as the BLOCKCHAIN itself in essence becomes the MIDDLEMAN..!!
So the next time you hear the Mainstream News spurt out total garbage about how important it is to the U.K. to stay in the EU because of the Derivatives Market, switch off the TV and brush up on BLOCKCHAIN DERIVATIVES..!!
Thanks again for reading.
Stephen