Blockchain-based Trading Platform to Launch on Swiss Exchange
Legendary Swiss stock exchange, SIX, is to incorporate blockchain technology into it’s operations with the launch of the SIX Digital Exchange (SDX), this according to a report from Reuters, February 6, 2019.
The SIX Digital Exchange
According to the company website, SDX will be the first-ever exchange to offer customers “fully integrated end to end trading, and settlement and custody service for digital assets.” The platform is expected to roll out in the first half of 2019.
Currently, the SIX exchange takes several days to perform a transaction, as the request goes through a three-step process before it is completed. With the introduction of the new SDX platform, two of these steps will be replaced by a blockchain integrated ledger, which will essentially speed up the process by thousands of times and now, the approval of a transaction will only take several seconds.
The integration of the new platform will require technical time, as there are many developmental and legal hurdles. During the first few months of the new platform’s release, the original SIX exchange will run parallel to it, however, SIX expects that the new exchange will outrun its predecessor fairly quickly.
Valerio Roncone, Product Management & Development, Securities & Exchanges, SIX, in a stated:
“The challenge in the digital asset space is to ensure clean, transparent and legally binding title to the assets between parties.”
What is left to do before the launch?
The SIX digital exchange is bringing innovation to the financial worldbeyond that of Switzerland and SDX is going to have numerous advantages when compared to traditional online exchanges on.
However, SIX has a lot left to do before the launch is possible; notably, due to the platform streamlining numerous services all in one place, there is legal documentation that has to be prepared and negotiations that still have yet to be settled.
Currently, the company is presenting its plans to the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank (SNB). These talks are necessary so that SIX has the right to set up and operate a framework of regulations, which will streamline and govern the trading chain of the platform.
After all these legal procedures are settled, the platform will be allowed to go online. Talking about the future of the company and the future of the digital platform Roncone said:
“We do not believe in a sudden leap between the traditional and digital worlds of trading. We think there will be a transition period, which is why we want to build a bridge between traditional and digital platforms.”