Re outages, it is not about the blockchain itself necessarily, but all the services and systems that interface with it.
Errors occur because humans are humans and fat finger trade details.
That aside, as I mentioned in original comment, instantaneous settlement has other problems, e.g netting is important in managing liquidity.
And to your point about crypto managing billions of dollars of tokens - it's an absolutely trivial amount compared to what's moved in the markets every day. Blockchains are incredibly inefficient and transaction rates orders of magnitude lower than what'd be needed.
You may not be familiar with the layer 2 innovations in crypto enabled by zero knowledge proofs, but blockchains such as Ethereum are about to get several orders of magnitude more efficient. It will absolutely be able to accommodate these transactions in the not too distant future. I get the tech needs to mature and get to a battle tested point first, but blockchain based stock trading is inevitable.
There’s just a single database that ultimately registers trades and ownership. [1] It’s not a technical limitation that creates the “constraints”. That’s what the parent is trying to explain.
That leaves me with more questions than answers with regards to DTCC's role in the future of finance. To me, it looks like an archaic, centralized institution that was set up to solve a problem they had in the 1960s with paper securities transfers. Smart contracts didn't exist then, so they weren't even an option. This central clearinghouse concept is going the way of the paper ticker. It has no place in the long term future of finance.
Yes, and they could "technically" build a scalable instantaneous system with a usable API. What prevents any movement in that direction is the messy interconnected web around it. A blockchain isn't going to help with it even if it's a technologically superior solution (it may not be).
Errors occur because humans are humans and fat finger trade details.
That aside, as I mentioned in original comment, instantaneous settlement has other problems, e.g netting is important in managing liquidity.
And to your point about crypto managing billions of dollars of tokens - it's an absolutely trivial amount compared to what's moved in the markets every day. Blockchains are incredibly inefficient and transaction rates orders of magnitude lower than what'd be needed.