{"id":171769,"date":"2020-01-13T17:49:12","date_gmt":"2020-01-13T17:49:12","guid":{"rendered":"https:\/\/wordpress-693215-2610341.cloudwaysapps.com\/index.php\/2020\/01\/13\/where-in-the-world-is-your-transaction-on-a-dlt\/"},"modified":"2020-01-13T17:49:12","modified_gmt":"2020-01-13T17:49:12","slug":"where-in-the-world-is-your-transaction-on-a-dlt-2","status":"publish","type":"post","link":"https:\/\/theotcspace.com\/where-in-the-world-is-your-transaction-on-a-dlt-2\/","title":{"rendered":"Where in the World is Your Transaction on a DLT?"},"content":{"rendered":"<p>When data is stored in a distributed systems such as a ledger, in multiple physical locations, how does that effect the application of law in a dispute or bankruptcy?<\/p>\n<p><!--more--><\/p>\n<p>ISDA have published a new paper entitled &quot;<a href=\"https:\/\/www.isda.org\/2020\/01\/13\/private-international-law-aspects-of-smart-derivatives-contracts-utilizing-distributed-ledger-technology\/\" rel=\"nofollow noopener\" target=\"_blank\">Private International Law Aspects of Smart Derivatives Contracts Utilizing Distributed Ledger Technology<\/a>&quot;. Sounds like a big deal and it probably is.<\/p>\n<ul>\n<li>Parties to an ISDA Master are free to elect the governing jurisdiction for their trades<\/li>\n<li>In the paper the example is a permissioned ledger (Corda) where all parties are known and tied back to nodes on the network<\/li>\n<li>The paper makes clear that an open access permissionless ledger would bring uncertainty and be an unlikely place to record OTC transactions<\/li>\n<li>The paper considers two scenarios a) an uncollaterised swap and b) a collateralised swap<\/li>\n<li>Scenario B) matters when securities are pledged to cover exposure and a corresponding record is made on the ledger. And in a sub-scenario where the ledger records an asset like a cryptocurrency coin as collateral<\/li>\n<li>In summary the law already has many mechanisms to establish which court a dispute would be heard in.<\/li>\n<li>For ISDA OTC transactions the use of a DLT doesn&#39;t have a material effect on the law. In small cases the location of the operator of a ledger may be relevant.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>When data is stored in a distributed systems such as a ledger, in multiple physical locations, how does that effect the application of law in a dispute or bankruptcy?<\/p>\n","protected":false},"author":1,"featured_media":18610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[52],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts\/171769"}],"collection":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/comments?post=171769"}],"version-history":[{"count":0,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts\/171769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/media?parent=171769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/categories?post=171769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/tags?post=171769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}