At the other end of the spectrum, there appear to be some markets or segments where clearing practices are relatively cumbersome and outmoded, and the network hurdles to the adoption of new technologies are lower.
Improvements in smaller markets would also provide an opportunity for market participants to gain operational and business experience with distributed ledger technologies that could help inform and strengthen the case for broader applications over time. A middle case would involve the application of distributed ledger technologies to bilateral clearing even where improvements have already been made since the financial crisis.