The demand comes in the light of more companies and banks using this technology, and the economic advantages it brings for exchanges. A tamper-proof shared ledger can automatically process and settle transactions using computer algorithms, with no need for third party verification.
The WFE acknowledged that blockchain was likely to have its biggest use in clearing and settlement, whereby the paperwork of a trade is completed and legal ownership of the security is swapped for cash. Blockchain seeks to combine elements of trading, clearing and settlement but current legal and regulatory rules treat separately each of those, the WFE agreed.
The World Federation of Exchanges asked its members about their plans to use blockchain. Responses from 24 exchanges, clearing and settlement houses such as CME Group, Deutsche Boerse, China Financial Futures Exchange, LCH.Clearnet, Japan Exchange Group, Nasdaq and Singapore Exchange accounted for the WFE survey. The research was conducted in conjunction with a consultative committee of IOSCO, a group for securities markets regulators who are studying the implications of blockchain.
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