In the modern digital age, the advent of computerisation
has created pathways and connected us in ways we could never have
imagined. This is in stark contrast to how the capital markets have
developed, where investors and issuers have never been further
apart than with the current system of intermediated holdings of
securities.
Indeed, the opening up of the global capital markets across
national borders has to date been possible only through the
interpolation of long chains of custodians between issuers and
investors. Historically, securities were held directly by the
investors, with their names and holdings listed in the register of
the securities maintained by the issuer.
Direct holding of securities provided investors with legal
ownership rights in the securities themselves. In intermediated
holding structures, the investor's rights have been diluted to
a claim against its direct intermediary in respect of that
intermediary's rights against the next
