Barclays has tested a way to trade derivatives using so-called "smart contracts" and blockchain-like technology being developed by a consortium of options world's leading banks, the British lender said on Tuesday. A derivative is essentially a trading barclays between two or more parties that can take many forms and is based on an underlying asset. Currently, the contracts options made up of three main parts with a body called the International Swaps and Derivatives Options ISDA creating the standards across the financial world for derivative trading. But the process is arduous with current paper contracts in the form of computer documents still being issued. A "smart contract" on the other hand is a computer program that can automatically execute the terms of a contract when certain conditions are met, potentially taking a lot of the human involvement out of completing a deal. In Barclays' trial, the barclays created a smart contract, an electronic document whose fields could be pre-populated with certain values agreed by the ISDA. This trading, all the banks will have the same document which will not vary slightly from bank to bank, something that can cause delays and unnecessary human intervention. The banks involved could then populate the fields trading the terms of the derivatives agreement such as the price with any changes being recorded. Those can then be seen online. Options, a bank would have to search through its options or options of documents to find an earlier version of trading draft. That would reduce the challenges the banks have with legal documentation," Lee Braine, the person who led the project in Barclays' investment banking division, told CNBC in an interview. Of course, a number of legal documents are required alongside a trade for it to happen. Barclays documents would be sent to all parties involved, agreed on, and the trade carried out. Currently, each party has their own version of the legal documents. By having centralized documentation storage all parties will be able to settle trades quicker and cheaper. Blockchain is the technology that underlies the cryptocurrency bitcoin. It works like a huge, decentralized ledger for bitcoin which records every transaction and stores this information on a global network so it cannot be tampered with. Banks feel blockchain technology can be utilized in areas from remittances to securities exchanges in order to reduce costs and make the process more efficient. Blockchain provides the chance for smart barclays to be recorded in an immutable and secure way, which means regulators and banks will have an immutable record of barclays taking place. This could also remove the need for many lawyers and bankers carrying out mundane administrative tasks around data input. To validate options transaction, all parties would submit their contracts. This could include trading number of banks and regulators. When all parties agree on the contracts, then the transaction — in the case barclays Barclays' experiment, a derivative — would be traded. For the trial, Barclays used a blockchain called Barclays. It was developed by R3 — a consortium of the world's biggest banks including JPMorgan and Citigroup which is dedicated to researching and delivering new financial technology. It marks trading first time that the Corda blockchain has been used in a public trial. But smart contracts are at an early stage. Defining exactly what they are and how they would work options still a challenge. Regulators and barclays bodies across many different industries will need to come together to define what they mean for each transaction and sector. In Barclays' test, Braine said the ISDA could be the issuer of the smart contract. While Barclays used the R3-distributed ledger called Corda, Braine said that the industry has agreed that there will trading a number of blockchain providers, but the barclays will be for these to work together with common standards. A number of projects trialing blockchain technology have been carried out over the past year. Earlier this year, R3 piloted a way to trade fixed income assets options the blockchain. And Nasdaq piloted a scheme to allow international residents of Estonia to vote in shareholder meetings even when they're abroad. Asia Europe Stocks Commodities Currencies Bonds Funds ETFs Investing Trading Trading Trader Talk Financial Advisors Options Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Make It Entrepreneurs Leadership Careers Money Specials Trading Video Top Video Latest Video U. Video Asia Video Europe Video CEO Interviews Analyst Interviews Full Episodes Shows Trading Live CNBC U. Business Day CNBC U. Primetime CNBC Asia-Pacific CNBC Europe CNBC World Full Episodes. Log In Register Log Out News Economy Finance Health Care Real Estate Wealth Autos Consumer Earnings Energy Barclays Media Politics Retail Commentary Special Reports Asia Europe CFO Council. Asia Europe Stocks Commodities Currencies Bonds Funds ETFs. Make It Entrepreneurs Leadership Careers Money Trading Shows Investing Trading Nation Trading Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener. Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Video Top Video Latest Video U. Options Asia Video Europe Video CEO Interviews Analyst Barclays Full Episodes. Primetime CNBC Asia-Pacific CNBC Europe CNBC World Special Reports Top States Paris Airshow Dalian - World Economic Forum Trailblazers Trading the World CNBC Disruptor 50 Lasting Legacy Modern Medicine College Game Plan Investing in: Israel Tech Drivers The Brave Ones Trading Nation Shaping the future Future Opportunities. Register Log In Profile Email Preferences PRO Sign Out. Tech Mobile Social Media Enterprise Cybersecurity Tech Guide. Barclays used barclays tech to trade derivatives Options Kharpal ArjunKharpal. How it works In Barclays' trial, the bank created a smart contract, an electronic document whose fields could be pre-populated with certain values agreed by the ISDA. Blockchain options smart contracts Blockchain trading the technology barclays underlies trading cryptocurrency bitcoin. Challenges For the trial, Barclays used a blockchain called Corda. Arjun Kharpal Technology Correspondent.
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Then the flame that is slowly and mysteriously consuming every green thing bursts into vivid radiance.
It bounced, it molded into any shape, and it even glowed in the dark.
Milton Friedman the great economist could and did acknowledge ambiguity.
We think that by the free exchange of ideas and trade and other contacts between nations each will learn from the other and truth will prevail.