With last February’s successful “proof of technology” blockchain test under its belt, UK-based ICAP is reportedly set to begin using the technology to handle thousands of forex trades. The group, which will be known as NEX Group beginning in January, will be working with the US company Axoni and will utilize ICAP’s Traiana messaging hub subsidiary to facilitate blockchain foreign exchange trades. The plan also involves providing ICAP’s customers with the code needed to access unique nodes on the blockchain, which will allow them to track and assess spot market deals.
Initially, the ICAP/NEX will run parallel systems – maintaining the legacy system as they bring the blockchain-based platform on-line. Ultimately, the goal is to eventually rely on the new system completely. Traiana will play a key role in the system’s move from reliance on traditional brokers to this new digital infrastructure. The ICAP subsidiary is currently responsible for reconciling transaction data prior to its transmission to clearing houses, financial firms, and regulators.
ICAP made news earlier this year when it announced that it had used blockchain technology to relay so-called “golden source” data to customers. That test involved nine receiving participants, and was deemed successful enough to prompt its use on a broader scale. ICAP representatives have suggested that its customers should receive the necessary codes by March, 2017.