SIX Swiss Exchange has decided to use blockchain technology for its upcoming parallel digital trading platform SDX. Switzerland’s leading stock exchange is expecting the integration to happen in the first six months of 2019, media reports claimed.
Approximately CHF 5.19 billion (Swiss francs equivalent of USD 5.18 billion) is processed by SIX Swiss Exchange in daily turnover. Moreover, it has a market capitalization of CHF 1.67 trillion (USD 1.6 trillion).
CEO Jos Dijsselhof stated that improved security and time efficiency that blockchain can offer in stock trading and settlement is the main reason for the company to develop this technology.
He added that in the present system, trades only take a few seconds but it usually takes two days for the buyer to become the owner of the stock. He hoped that by integrating the blockchain technology, the whole process would take only a few seconds. Along with improved efficiency, it should make the process more secure as well. He predicted that a blockchain-powered stock exchange would widen the range of tradable titles.
Romeo Lacher, SIX exchange chairman, told Reuters that the launch date of the new platform would be announced after legal and regulatory clarification with the Financial Market Supervisory Authority, adding that the announcement was expected by the end of summer.
The company expects that its SDX digital exchange will supersede its current market place by 2029, noted Reuters. SIX is also aiming at launching its own security token offering, allowing investors to have an equity stake in exchange for capital.
However, SIX is not the only exchange looking to integrate blockchain technology. The Deutsche Börse also said that it has made significant progress on its securities lending platform, which will be based on blockchain technology.
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