NEW YORK, Feb. 23, 2016 /PRNewswire/ -- GMG is pleased to announce the filing of a provisional blockchain patent holding potentially groundbreaking changes to the financial services industry. Blockchain technology, the new frontier in transaction processing, offers powerful real-world financial applications but presents a number of challenges that must be overcome before it can be adapted to securities transactions. Secure, near real-time trading, settlements, and reporting would significantly reduce the capital requirements and costs associated with enterprise processes banks and brokerages currently use for post-trade operations.
Principals at Gartland & Mellina, a management consulting firm focused on the financial services industry, have been engrossed in the research and development of this new blockchain technology application to better approach future client and industry needs. GMG's Managing Director and Blockchain Solutions Lead in the Financial Services Strategy and Solutions Practice, Paul Dowding, explains, "By understanding the current utilization of blockchain as used in cryptocurrencies, we identified the core challenges involved in applying the technology to the financial services industry as a whole. By resolving these challenges, we were able to design a unique, holistic set of blockchain solutions for the whole industry that is product, transaction and functionally agnostic."
GMG's solution solves the core challenges of applying blockchain technology to the financial services industry by offering:
- Flexibility for Coding and Control: We built a mechanism to create complex, multi-leg, dependent transactions within the primitive coding logic of blockchain technology
- Scalability & Volume: Our innovative blockchain ledger design and approach handles the significant memory, capacity and volume requirements of a high volume and high capacity continuous record
- Anonymity and Integrity: The GMG blockchain has the means to retain client and trade confidentiality, even on a shared ledger
- Suitable Blockchain Methodology: GMG maintains ledger integrity through a new real time, high volume, low latency processing design
- Contingent, transaction legs: We created a flexible option securing the settlement of dependent transfers of different assets such as DVP/RVP (sell-side fills and buy-side allocations), collateral substitution and FX
- Financing & liability-driven assets: Our blockchain solution accommodates lending, collateralized and default transactions
- Non-Ledger referenced transactions: The blockchain allows for future dated, accrued and short transactions
- Interface with Current Markets: Asset value can be transferred between the blockchain and current markets
- Interoperability: GMG created a product, process, functional and blockchain agnostic environment
- Current Regulatory, Risk, Credit, Custody, Performance & Accounting Reporting: Data acquisition and interpretation is significantly enhanced by blockchain ledgers
This revolutionary design and approach helps GMG overcome many of the challenges facing the financial services industry today. It addresses growing industry needs for superior security, enhanced data acquisition, quicker transaction times, scalability, and lower costs. John Gustav, Partner of Financial Services Strategy and Solutions at GMG said, "Blockchain technology is considered by many to be the key ingredient to disruption within the financial services industry. It certainly has the potential to create a paradigm shift similar to the way the internet did. Our holistic, product-agnostic approach to blockchain is very different from the other publicized solutions within the financial services industry at this time."
With blockchain technology, a decentralized network stores the value of all investor assets in encrypted records. This allows contractual transactions, transfer of value, safekeeping and settlement for asset positions to occur digitally in near real-time without the need for a trusted third party. As forging a transaction, stealing or double spending requires overpowering a majority of the computers across the decentralized network at the exact same time, blockchain has an inherent level of security unavailable anywhere else. "Our patents include a generic mechanism to translate financial services transactions into the blockchain's simple logic and secure code," Dowding continued. "Benefits include significant cost reduction, near-real-time settlements, new business, product and revenue opportunities and process, and balance sheet and capital efficiencies." GMG is currently in discussion with different parties to leverage and develop blockchain capabilities as a utility.
About Gartland & Mellina Group
Gartland & Mellina Group was formed by a team of professionals with an average of 25+ years of experience within the financial services industry. Their mission is to apply industry knowledge and a wide range of experience to deliver viable, measurable and lasting client solutions. GMG inspires commitment, innovation and teamwork while providing efficient and effective strategies which enhance their clients' opportunities for success.
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SOURCE Gartland & Mellina Group