Securities, intermediation and the blockchain: an inevitable choice between liquidity and legal certainty?

Paech, Philipp (2016) Securities, intermediation and the blockchain: an inevitable choice between liquidity and legal certainty? Uniform Law Review, 21 (4). 612 - 639. ISSN 1124-3694

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Abstract

The practice of securities holding, transfer, and collateral has changed significantly over the past 200 years—moving from paper certificates and issuer registers, to an intermediated environment, and from there to computerization and globalization. These changes have made transacting more efficient and thus rendered markets more liquid. However, the law has lagged behind and is now itself an obstacle to efficiency because international securities transactions are subject to considerable legal uncertainty. The latest global market development, a cryptographic transfer process commonly called the blockchain, is the most recent efficiency-enhancing change. It offers a unique possibility to create a consistent legal framework for securities from scratch, on the basis of a legal concept that, to some extent, resembles bearer securities. This article shows what the new international legal framework could look like in the light of experience gained from earlier developments.

Item Type:	Article
Official URL:	http://ulr.oxfordjournals.org/
Additional Information:	© 2016 The Author
Divisions:	Law
Subjects:	H Social Sciences > HG Finance J Political Science > JX International law
Date Deposited:	26 Sep 2016 16:42
Last Modified:	07 Mar 2024 06:03
URI:	http://eprints.lse.ac.uk/id/eprint/67870

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