SIX Swiss Exchange Ready To Launch New SDX Trading Platform Using Blockchain Technology
Swiss Exchange Ready To Launch New SDX Trading Platform Using Blockchain Technology
The Swiss SIX exchange is planning to launch a new trading platform powered by blockchain technology. The new SDX platform is expected to be launched during the second half of this year and it will be speeding up trading activities for investors. The information was released by Reuters on February 6.
According to the Chairman of the exchange, Romeo Lacher, the SIX Digital Exchange will be running parallel to the current SIX platform. The current services allow customers to complete a trade in three steps and often in several days. Now, those steps will be performed using distributed ledger technology (DLT) in just a few seconds.
According to Lacher, the supervisory board is currently discussing some details with the regulatory agency of the country, the Finma. The new course is expected to overtake the traditional trading platform within a decade from now.
There are other exchanges and platforms that are taking similar decision to improve their services using blockchain technology. In the future, the company wants to raise money using the new platform through a Security Token offering (STO).
An STO offers a stake in the company compared to an Initial Coin Offering (ICO) that it offers just a voucher for future products or services. Initial Coin Offerings expanded in 2017 and the beginning of 2018. Thousands of new tokens were released to the market, but most of them were not able to succeed.
SIX has been very open towards new technologies such as blockchain. These improvements that the stock market wants to implement show that DLT allows firms to reduce costs and improve their services. The underlying processing steps are usually based on old protocols of paper and post.
In Australia, the Australian Stock Exchange (ASX) is also planning to use blockchain technology to replace the CHESS system. In this way, it will be possible to reduce costs and place Australia at the forefront of innovation in financial markets.
Switzerland has always been open to blockchain technology and virtual currencies. The country opened its doors to firms from all over the world to invest in these technologies in the country. The Zug crypto valley became very famous as a place for firms to settle their operations.