SETL, which describes as an institutional payment and settlement infrastructure based on blockchain technology, says it plans to revolutionise clearing and settlement. It says the SETL system will enable market participants to move cash and assets directly between each other, facilitating the immediate and final settlement of market transactions.
The SETL system maintains a permissioned distributed ledger of ownership and transaction records, simplifying the process of matching, settlement, custody, registration and transaction reporting.
The initiative is led by Peter Randall, the former CEO and founder of Chi-X, the pan-European equities trading venue, and Anthony Culligan, an experienced hedge fund investor and CEO and founder of Roolo, a peer-to-peer bitcoin trading site. The SETL management team comprises Anthony Culligan as chief executive officer, Peter Randall, chief operating officer, Nicholas Pennington, chief technology officer and Francois Barthelemy, head of corporate strategy.
SETL says its system has been designed from the ground up to meet the needs of the finance industry and eliminate some of the concerns raised about the use of blockchain technology for financial markets. These include anonymity, typical for ‘permissionless’ blockchains such as the bitcoin blockchain, which would present challenges to money laundering and know your client obligations of financial institutions, and the limited capacity and speed of current blockchains, not designed to handle the required volume of financial transactions. SETL says its product is a real-time, real-world system which will offer connectivity and compatibility with existing work flows, systems, standards and regulations.