Mechanism of “improving the efficiency of cash-on-delivery settlement”
As of January 31, Tokyo-Japan Securities Clearing Corporation (CCP), a subsidiary of the Japan Exchange Group, has introduced blockchain technology for settlement by delivery of natural rubber (NR) futures.
In a Jan. 30 announcement, the CCP said the technology would be used for delivery and settlement of RSS3 futures as the Osaka Exchange (OSC).
According to the CCP, RSS3 is “the most standard natural rubber graded by international organizations or official bodies in the country of origin.”
This is the first time that the Japan Stock Exchange has used this technology.
Delivery settlement of NR futures is currently done through the exchange of documents called “delivery orders”, which allow the holder to take delivery of the rubber.
In the future, the delivery method will shift to online exchange of tokens that record delivery order information using blockchain technology.
According to CCP, the project involves a total of 13 companies, including sellers, buyers and warehouses.
In the case of online transactions, delivery orders can be completed in a short period of time, as there is no need to prepare and deliver each payment.
This is expected to improve the efficiency of hand-delivery settlements.
