Salamanca, October 5 2021 – The international scientific community that studies the use of blockchain and artificial intelligence, welcomed the study carried out by Armundia Group and the Department of Engineering and Information Sciences and Mathematics (DISIM) of the University of L’Aquila on financial post-trading of OTC derivative transactions. During the third edition of the congress held in Salamanca (Spain) from 6 to 8 October 2021, the results of the work of the Italian partnership will be unveiled. It will be able to offer clear advantages in terms of error reduction, relationship with regulators, repository and high automation, as well as speed in validating operations. This application has positive ripple effects on workflows and optimizes the human resources management, freed from manual and repetitive operations.
Nowadays, OTC (Over-the-Counter Derivative) derivative contracts, i.e. transactions negotiated directly between two contracting parties outside the regulated markets, offer many opportunities to intermediaries and financial advisors. In fact, they have the advantage of being particularly customizable and much more flexible than financial assets and standardized derivatives traded on regulated markets. However, in most private banking organizations, this type of transaction is performed manually by specialists, bearing the potential risk of human error.
That is exactly the type of risk that prompted Armundia Group to enquire the University of L’Aquila about a study on the possibility of automating transactions with OTC derivatives, to eliminate the criticalities that can occur in credit, liquidity, the legal aspect, in custody and operation.
As a matter of fact, in a “Distributed Ledger Technology” environment, the common issue of lack of transparency of these financial products could be solved: often the negotiation does not follow a standard procedure and can also be finalized with a simple phone call.
In the current scenario, the so-called OTC derivatives represent more than 70 percent of the trading volume of the European market, given that the Stock Exchanges tend to underestimate as these trades are not picked up by official statistics.
THE CONGRESS OF SALAMANCA
The “International Congress on Blockchain and Applications” brings together every year the worldwide scientific community to illustrate studies and application research on the topics of Blockchain and Artificial Intelligence.