The pan-European clearing house Cboe Clear Europe took part in the Eurosystem wholesale DLT settlement trials alongside ABN Amro Clearing Bank. It tested the use of wholesale central bank digital currency (wCBDC) as collateral for margin calls. Most trials by other institutions focused on securities settlement.
Currently securities trading activity continues after the EU’s TARGET payment system closes for the day. As a result, margin calls are met with US dollar commercial bank money. Hence, Cboe Clear Europe wanted to test the Euro central bank money option.
Regarding the specific functionality it tested, this included not having sufficient CBDC to meet the margin call, withdrawals, early redemptions and end of day balance redemptions.
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