kaal:claim:3411110-016

Instant settlement destroys an existing business practice: without the T+3 grace period, institutional investors can no longer lend idle shares to investors covering short positions.

Source quote, verbatim

Without this grace period in a blockchain-based settlement system, institutional investors will no longer be able to lend their idle shares to investors to cover short positions.

From

Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019), III.4 Impact on Traditional Market-Participants, p. 18
https://ssrn.com/abstract=3411110 · source PDF

Cite as

Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

Holds when

blockchain based settlement without a grace period

Classification

failuresupport: arguedfailure: loss of the settlement grace periodfamily: transition-and-migration-risksecurities-lawdefieconomics

Verify

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