SIX, Switzerland’s leading stock exchange is already making plans to launch a blockchain based platform aimed at speeding up trading on the exchange. The rollout of the blockchain platform is expected to take place later this year.
Trading Takes Several Days to Complete on Current Platform
Presently, users of the SIX platform have to go through several steps before completing a trade on the platform. This steps generally take more than 24 hours before reaching completion. This is poor compared to other financial market structures.
With the introduction of blockchain technology, the exchange will be able to reduce the stages involved in trade completion by at least two. This will in turn reduce the trade lifecycle significantly.
According to a recent report announcing the new initiative, the stock exchange is going to launch the new platform alongside its existing one. The new platform will be for some selected stocks initially, after which a wide range of stocks and bonds will be added to the platform. Exchange-traded funds (ETFs) will also be included on the new platform and there is also a possibility of tokenized physical assets such as art.
According to the SIX’s chairman Romeo Lacher, the SIX supervisory board will “probably” make the final decision late in the summer of 2019, as it is still working out legal and regulatory issues with Switzerland’s financial markets regulator, FINMA. “We want to start with our own security token offering,” Lacher explained
A Win For Capital Markets Infrastructures
Speaking on the launch of the new SIX DLT-based platform, the CEO Jos Dijsselh stated that:
“This is the beginning of a new era for capital markets infrastructures. For us, it is abundantly clear that much of what is going on in the digital space is here to stay and will define the future of our industry.”