The challenges of Smart Contract implementation Simplify / electronify the process of contract creation • Two different things to solve for contractually: o The wider relationship between clearing broker and direct client (governed by the clearing broker’s Terms of Business); and o The terms of the trade being cleared (governed by a combination of such Terms of Business and the exchange/clearing house rules relating to the applicable derivative contract). • So, it’s not just a single, bilateral, relationship with a single set of terms • How do you capture the clearing house rules that are required to be incorporated into the Terms of Business between the clearing broker and the direct client? What should the effect of subsequent rule changes be and how do you incorporate those into the contract? • Regulations from around the globe form the bedrock of the legal agreements - after the date of entry into of the contract, how does a Smart Contract cater for changes in regulation that require changes to the contract? UNRESTRICTED 63