Custody chains and asset values: why crypto-securities are worth contemplating

Eva Micheler

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Computerisation facilitates instantaneous and direct links between all of us in our work and social lives. At the same time, and counterintuitively so, securities are increasingly held indirectly through chains of custodians that operate between issuers and investors. This disconnects investors from issuers and can significantly reduce the value of assets. The regulatory framework does not prevent this effect. UK regulated holders of client securities should be required to hold these directly in the name of the investor. At an international level it is worth asking if the technology underlying bitcoin and other cryptocurrencies can be used to create an un-intermediated securities ledger connecting investors and issuers directly.

Keywords: shares; debt securities; interests in securities; custodian; depositary; client asset rules; cryptocurrency; financialisation (search for similar items in EconPapers)
JEL-codes: F3 G3 (search for similar items in EconPapers)
Date: 2015-11-01
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in Cambridge Law Journal, 1, November, 2015, 74(3), pp. 505-533. ISSN: 0008-1973

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