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Introduction

Financial Markets cover Capital Markets, Money Markets, Commodity Markets, Forex Markets, Derivative Markets, Crypto-Currency Markets, Futures Markets etc.. Capital Markets Capital Markets are a way to connect investors and borrowers for long term lending of capital. Investors or lenders can be individuals or other entities.  Borrowers are typically companies Investors are compensated directly by borrowers or are rewarded by appreciation of the are markets for long-term securities, including the stock market and the bond market dealing with equities, bonds, mutual funds including ETFs, and credit markets. Money Markets cover short term (less than one year) borrowing. These along with the attendant markets are the way to invest in enterprises, so that funds from investors are put to productive use in Enterprises. Mechanisms to hedge or leverage the risk of this exposure for both Enterprises and Investors are also available through these Markets. 

Why should this group be launched?

This large vertical is not currently covered by any SIG in Hyperledger. 

We have a Trade Finance SIG in Hyperledger. Trade Finance deals with financing international and domestic trade primarily by banks. There is exposure to the primary documents connected to trading of goods and services. On the other hand, the Financial Markets SIG will focus on Markets which deal in securities that are fungible, open, regulated heavily and have a lot more flow and participation. Please see the scope section below to get a better feel for the Financial Markets proposal.  

Scope

The Financial Markets SIG will study how Hyperledger DLTs should interact with Financial Markets use cases.  From issuance and trading of all instruments (primary market) to secondary markets for the continued market-making, dispersal of risk and other activities; regulation; capital requirements; traceability, pre-trade analysis and valuation; post-Trade settlement with custody and bookkeeping. Are there architecture, identity, performance related considerations specific to Financial markets and DLTs. These are questions to be answered by this SIG. In the beginning we attempt to develop a taxonomy of the domain by viewing it in a couple of dimensions.

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Develop a simple taxonomy of Financial Markets; first concentrating on the flow and fungibility of securities (bonds and stocks generalized to derivatives, futures and currency markets) ; issuance, trading, settlement, custody and corporate actions (payment of dividends, shareholder communications, buy backs etc).

Collaborators (other groups):

Performance and scale WG to look at generating benchmarks in the Financial Markets phase. What are the architectural implications (architecture WG). Banking & KYC with IDWG. Look at already developed use cases in this sector in Hyperledger DLTs (Fabric, Sawtooth, Iroha, Quilt, Burrow).  Collaborate with the Public Sector SIG for getting a window into Financial Markets regulation.

Look at the work being done by the Trade Finance SIG which covers a specific sector of the financial markets.

Interested Parties:

The following individuals have already expressed an interest in joining this SIG, and we hope they will become contributors over the first year:

List of interested parties listed with their consent, including name, association, and optionally email addresses.

Proposed Chair

The following individual(s) have volunteered to serve as the initial Chair/Co-Chair’s of the SIG:

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