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10 Wm. & Mary Bus. L. Rev. 369 (2018-2019)
Evaluating the Costs and Benefits of a Smart Contract Blockchain Framework for Credit Default Swaps

handle is hein.journals/wmaybur10 and id is 397 raw text is: EVALUATING THE COSTS AND BENEFITS OF A SMART CONTRACT BLOCKCHAIN FRAMEWORK FOR CREDIT DEFAULT SWAPS RYAN CLEMENTS* ABSTRACT Despite wide speculation about its use-value, there are very few large-scale Blockchain implementations, particularly in sophis- ticated financial applications and mature markets. The extent of Blockchain's disruptive potential in these domains is uncertain. This Article considers Blockchain's use-value for credit default swap con- tract execution, fulfillment, and post-trade processing by using, as an assessment base, a series of derivative industry whitepapers, aca- demic and technological evaluative studies, and commentary relat- ing to current market undertakings. In summary, when applied to credit default swaps, there are many barriers to implementation, as well as costs, fragmentation risks, technological deficiencies, and practical drawbacks. As a result, there is some doubt on the extent of Blockchain's short-term transformational value for complex finan- cial structures and mature trading markets. This, at least in part, explains the fact that Blockchain projects are currently slow to ma- terialize in derivatives and other financial market applications. 369 * Ryan Clements, BA (Honors, Alberta), LLB (First Class, Alberta), LLM (Magna Cum Laude, Duke) is an adjunct law professor at the University of Alberta and a current doctoral (SJD) candidate at Duke University School of Law.