Recently, Swiss stock exchange, SIX has initiated a prototype of distributed ledger technology-based central securities depository (CSD) and digital trade. In the meantime, trading has begun on Boerse Stuttgart Digital Exchange.
Besides, the prototype is intended to show that distributed central securities depository (CSD) based on distributed ledger technology can be coordinated with a central order book stock trade model to guarantee unbiased conditions for all.
Moreover, future releases will offer more excellent functionalities, with specific accentuation on asset servicing, in the first quarter of 2020. Additionally, the full launch is anticipated in the fourth quarter of 2020, which offers trading, listing, custody service, and settlement.
Furthermore, test cases will display the potential of SDX’s riskless exchanging model, and settlement on Distributed ledger technology. Over and above, beginning stage functionality will cover digital security token issuance along with live exchanging and instant settlement. Additionally, this will incorporate the cash leg of the exchange, embracing the idea of a payment token along with access to a distributed portal where it is feasible to check the transactions over explicit DLT member nodes.
Regardless, members making exchanges will be executed through a facility resembling the current Swiss Stock Exchange framework. Additionally, the asset token issuance process on SDX is done by making use of the Swiss Stock Exchange’s Connexor service and its industry-leading functionality.
Thomas Zeeb, Chairman SDX and Member of the Executive Board at SIX, Speaking of the prototype, stated –
The launch of this prototype is a major milestone in creating a credible digital infrastructure for moving our industry forward. We are now one step closer to demonstrating the viability of our vision for the financial markets of the future and, ultimately, for the way people and businesses access capital. SDX is a testament to the innovative nature of the Swiss stock exchange and the foresight of its shareholders – we are combining existing market technology with revolutionary new technologies to create the market of the future.
SDX’s exchanging facility will be like the SIX infrastructures, while token issuance will use SIX’s Connexor reporting service and functionality. Eventually, SDX means to empower instant settlement with no other party risk or necessity for default collateral fund.
For the record, stage two of the prototype is required to be ready in “coming months,” and will take in feedback from its initial stage. Also, it will add the first post-exchange and functionality of digital custody, as indicated by SDX. Moreover, exchange clients will have the option to hold their assets on the SDX in a “distributed way,” with access using a private key.