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Disrupt or be Disrupted – Can blockchain technology revolutionise Irish asset management and what are the implications for trade and settlement and the regulatory outlook?

Garry, Richard (2018) Disrupt or be Disrupted – Can blockchain technology revolutionise Irish asset management and what are the implications for trade and settlement and the regulatory outlook? Masters thesis, Dublin, National College of Ireland.

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Abstract

The purpose of this dissertation is to explore the role of blockchain technology as a disruptor for the Irish asset management industry. Specifically, the points of interest are the trade and settlement functions within the operational activities of the Irish asset manager and the impacts on regulation should the incumbent technology be supplanted with blockchain.

Asset management has a strong history of technology adoption. Fintech innovations are key to the evolution of asset management and banking, the usage of real time trading information providers such as Bloomberg, algorithm trading, fully integrated asset management trading systems and high frequency trading (HFT) - disruptive technology is key to their evolution. In addition to these areas, the internet and global connectivity has revolutionised the industry, allowing for a global approach, increasing the number of competitors, products, client access and creating a truly globalised market place. The coupling of this with the increase of active management, greater levels of AUM and increased access to markets, means trading volumes are at historical highs and therefore greater regulatory requirements and trade and settlement needs.

Recent developments in blockchain technology utilising a distributed ledger, has been much-muted as a game changing Fintech application. Much of the literature posits that the technology will benefit all areas of asset management, from back, middle and front office applications. Key areas of influence and potential disruption are Trade and Settlement and Regulation.

This research is justified given the ascendance of blockchain technology within the financial services industry and as a phenomenon of further investigation as a disruptive technology with far reaching impacts within the industry.

Key research findings develop on the opportunities that blockchain technology can create in the Irish asset management industry, specifically, the roles within regulation and the role regulation is currently playing. Trade and settlement efficiencies are examined and the implications and reasoned adoption benefits considered. With key findings being a lack of direction from the Irish regulator and an apparent lack of communication regarding the future landscape around the technology.

Developed is the realisation through research that there is difficulty in alignment, between the current technology and the possible areas of utilisation, efficiencies and cost effectiveness. These assertions are developed and realised, despite the widespread assertions that the technology will be disruptive and will displace the incumbent.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance > Financial Management
H Social Sciences > HG Finance > Financial Services
Divisions: School of Business > Master of Business Administration
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 30 Oct 2018 10:49
Last Modified: 30 Oct 2018 10:49
URI: http://trap.ncirl.ie/id/eprint/3347

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