Hostname: page-component-78c5997874-m6dg7 Total loading time: 0 Render date: 2024-11-17T16:38:59.319Z Has data issue: false hasContentIssue false
  • English
  • Français

Regulatory changes for redesigned securities markets with distributed ledger technology

Part of: Distributed Ledger Technologies: Papers Arising from Three Australian Symposia

Published online by Cambridge University Press:  31 March 2020

Muthukkumarasamy Thuvarakan Open the ORCID record for Muthukkumarasamy Thuvarakan [Opens in a new window]
Muthukkumarasamy Thuvarakan*
Affiliation:
College of Law, Australian National University, Canberra, Australia e-mail: u6082768@anu.edu.au
Get access Rights & Permissions [Opens in a new window]

Abstract

Distributed ledger technology (DLT) is regarded as a revolutionary solution that offers immutability, transparency, trust, and efficiency while ‘transcending law and regulation’. One of the potential applications of DLT is in the securities market. Share registration, settlement, regulatory compliance, information disclosure, payment systems, and market service requirements can be redesigned with the use of DLT. This paper will examine the impact that such changes will have on legal theories and governance, while also discussing the effects on enforcement techniques. In addition, general blockchain-legal issues will be critically analyzed in the context of securities markets.

Type
Research Article
Information
The Knowledge Engineering Review , Volume 35 , 2020 , e14
Copyright
© Cambridge University Press, 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

ASC v Nomura 1998 89 FCR 301, 304 (Federal Court of Australia).Google Scholar
ASX. 2015. The Australian Share Ownership Study.Google Scholar
ASX. 2018a. CHESS Replacement: New Scope and Implementation Plan (Consultation Paper).Google Scholar
ASX. 2018b. Report 592; Review of ASX Group’s Technology Governance and Operational Risk Management Standards.Google Scholar
Berberich, M. & Steiner, M. 2016(2). Blockchain technology and the GDPR – How to reconcile privacy and distributed ledgers? EDPL, 422–430.Google Scholar
Buchanan, R. 2017. The Role of Technology in the Future of Legal Professions. The Oxford Law Blog.Google Scholar
Caytas, J. 2017. Blockchain in the U.S. regulatory setting: evidentiary use in Vermont, Delaware, and Elsewhere. Columbia Science & Technology Law Review, 1, 1–10.Google Scholar
Cermeño, J. 2016. Blockchain in financial services: regulatory landscape and future challenges for its commercial application. In Working Paper.Google Scholar
Coffee, J. 1984. Market failure and the economic case for a mandatory disclosure system. Virginia Law Review 70, 717–729.Google Scholar
Deloitte. 2016. Opportunities and Implications of Blockchain in Australia, 1–15; https://www2.deloitte.com/content/dam/Deloitte/au/Documents/financial-services/deloitte-au-fs-opportunities-implications-blockchainaustralia-180516.pdf.Google Scholar
Dole Food Co. v Patrickson. 2003. 538 US 468, 472 (Supreme Court of the United States).Google Scholar
Tapscott, D. & Tapscott, A. 2017. How blockchain will change organisations. MIT Sloan Management Review 58(2), 10–12.Google Scholar
Ducas, E., & Wilner, A. 2017. The security and financial implications of blockchain technologies: Regulating emerging technologies in Canada. International Journal 72(4), 538–560.Google Scholar
Easterbrook, F. & Fishel, D. (1984) Mandatory disclosure and the protection of investors. Virginia Law Review 70, 669–685.Google Scholar
Fischel, D. & Carlton, D. 1982. The regulation of insider trading. Stanford Law Review 35, 857–870.Google Scholar
Klayman, A., Peck, G. & Wojciechowski, M. 2017. Why the Delaware blockchain initiative matters to all dealmakers. In Forbes; https://www.forbes.com/sites/groupthink/2017/09/20/why-the-delaware-blockchain-initiativematters-to-all-dealmakers/#5ba984707550.Google Scholar
Lamarque, M. 2016. The Blockchain Revolution New opportunities in Equity Markets. Masters Submission, MIT Sloan School of Management.Google Scholar
Mainelli, M. & Milne, A. 2016. The impact and potential of blockchain on the securities transaction lifecycle. In Working Paper.Google Scholar
Mehar, M., Shier, C. & Giambattista, A. 2019. Understanding a revolutionary and flawed grant experiment in blockchain: the DAO attack. Journal of Cases on Information Technology 21(1), 20–23.Google Scholar
Micheler, E. & Whaley, A. 2018. Regulatory technology: replacing law with computer code. In Working Paper.CrossRefGoogle Scholar
Miraz, M. & Donald, D. 2018. Application of blockchain in booking and registration systems of securities exchanges. In Paper Presented at IEEE International Conference on Computing, Electronics and Communications Engineering, University of Essex.CrossRefGoogle Scholar
North v Marra Developments. 1981. 148 CLR 42, 59 (High Court of Australia).Google Scholar
Odorisio, N. 2017. ASIC and ASX hot on distributed ledger technology. Governance Directions 69(4), 225–230.Google Scholar
Paech, P. 2017. The governance of blockchain financial networks. Modern Law Review 80(6), 1073–1085.CrossRefGoogle Scholar
Stevens, D. 2018. 2018 Macquarie Australia Conference: Strengthening the foundations for continued resilience and future growth. In ASX.Google Scholar
Van der Elst, C. & Lafarre, A. 2018. Blockchain technology for modernizing share holder dialogue. In Working Paper.Google Scholar
Yeoh, P. 2017. Regulatory issues in blockchain technology. Journal of Financial Regulation and Compliance 25(2), 196–205.CrossRefGoogle Scholar
Zetzsche, D., Ross, P. & Arner, D. 2017. The distributed liability of distributed ledgers: legal risks of blockchain. University of New South Wales Law Research Series 52, 62–65.Google Scholar