Switzerland’s largest stock exchange SIX is readying a new blockchain-based trading platform that they claim could replace the company’s current trading system entirely within ten years, according to a November 14 Reuters report.
Expected to launch in mid-2019, the exchange will initially operate parallel to the SIX’s current trading system and will do away with paper-based back-end processing that is still necessary for fully electronic trading exchanges to function. The new distributed ledger technology (DLT) system will remove two of the three steps required to finalize securities trades on the existing platform, which can take multiple days to process.
Thomas Zeeb, the head of securities and exchange at SIX told Reuters that:
“The existing system could be completely replaced by the [newer] digital asset exchange in about ten years,” adding that: “The moment that brokers, banks, insurance companies and big asset managers really see the cost advantages, they’ll move relatively quickly.”
Zeeb said that he expects the exchange to trade stocks, bonds, and exchange-traded funds (ETFs). The exchange could allow trading of non-securitized assets or assist companies to raise capital through regulated Initial Coin Offerings.