Trade body Irish Funds is using
blockchain technology to help investment managers and their
fund administrators tackle a challenging reporting regime put
in place by Ireland's central bank.
MMIF, short for Resident Money
Market and Investment Funds Return, was introduced in 2014 and
applies to all UCITS and hedge funds based in Ireland.
Stats on securities
lending/borrowing, derivatives and overdrafts form part of the
reporting requirements, intended to be more fluid and
systematic than the previous OFI1 process.
Fund administrators have been doing
most of the work on behalf of their investor clients. However,
preparing the reports has been costly and demanding on internal
The sheer volume of trades executed
by many high frequency trading hedge funds (often tens of
thousands of trades a day) has caused difficulties in the
Most have found the timeline for
submission (monthly for money market funds and quarterly for
others) very tight. Ongoing changes to the regulation, made
with little notice by Ireland's central bank, haven't
Responding to a survey by RR
Donnelley last year, an individual claimed MMIF reporting
was "the bane of everyone’s life" at their
This week Irish Funds,
the representative body for the international investment
fund community in Ireland, revealed it is building a
blockchain-based platform focused on MIFF.
Eventually funds, administrators
and regulators will be able to access the distributed ledger
system which could lower costs, boost transparency and ease
Northern Trust, State Street
and Metzler are involved in the proof of concept which is being
developed at Deloitte’s recently opened EMEA Grid
Blockchain Lab in Dublin.
"Regulatory reporting is a key obligation for our members
and an area of priority focus for the Central Bank of Ireland
in 2017," said Irish Funds chief executive Pat Lardner.
"This project and the development of the proof of concept
with Deloitte will benefit industry, the regulator and
demonstrates how Ireland is actively embracing FinTech."
David Dalton, head of financial services at Deloitte
Ireland, added: "Blockchain technology has huge potential in
financial services to reduce the cost and improve efficiency.
This is an important step in bringing this to reality."