Reuters recently reported that the London Stock Exchange Group is partnering with IBM to develop a platform that will digitize the issuance of private shares for small and medium enterprises (SMEs) in Italy and throughout Europe. The LESG system has been built to store and share transaction records for SME SME shareholders, in a safe, “gated” environment.
According to the report, the exchange’s Italian operator, Borsa Italiana, is set to test the new system. If successful, the platform would help simplify the process of tracking information about those private companies’ shareholders. The LSEG website describes the system and its current testing:
“The system, built on the Hyperledger Fabric version 1.0 blockchain framework, is designed to help ensure that highly sensitive securities data can be shared amongst permitted network participants while remaining secure and gated. It was developed in collaboration with IBM and is now undergoing an initial test phase with a small group of partners and clients.”
The goal is to replace existing legacy systems that utilize paper trading certificates and help SMEs join the digital world. Once the platform is fully functional and properly vetted, it will provide greater transparency for the trading process and offer shareholders, share issuers, regulators, and other key players greater access to information about those companies.