Document Type


Publication Date



This chapter explains several benefits of adopting transparent information technology systems for intermediated securities holding infrastructures. Such transparent systems could ameliorate various prevailing problems that confront existing tiered, intermediated holding systems, including those related to corporate actions (dividends, voting), claims against issuers and upper-tier intermediaries, loss sharing and set-off in insolvency proceedings, money laundering and terrorist financing, and privacy, data protection, and confidentiality. Moreover, transparent systems could improve the functions of intermediated holding systems even without changes in laws or regulations. They also could provide a catalyst for law reform and a roadmap for substantive content of reforms. Among potential areas of law reform that transparent systems might inspire is the prospect for disintermediation of holding systems through new technologies, including digital ledger technology.

Publication Citation

In Intermediation and Beyond (L Gullifer & J Payne eds., Hart Publishing, 2019).