Swiss exchange SIX has concluded plans to launch a new trading platform powered by blockchain technology, according to a report by Reuters on Wednesday, February 6.
SDX platform to be launched in the second half of the year
SIX exchange has revealed plans to launch a new SDX platform in the second half of this year. The platform will be designed to speed up trading activities for investors. The chairman of the exchange, Romeo Lacher, mentioned that the SIX Digital Exchange would be operating parallel to the current SIX platform.
The services on SIX enable customers to complete a trade in three steps, which sometimes takes several days. The same steps will be performed on the new platform using distributed ledger technology (DLT), with trading time reduced to only seconds.
Lacher revealed that the supervisory board is discussing the details with FINMA, Switzerland’s regulatory body. The SDX platform is expected to surpass the traditional trading platform over the coming years.
SIX is planning to raise funds using the SDX platform via a security token offering (STO). STOs have become popular in the crypto space, offering investors a stake in the company. Some companies prefer STOs over ICOs, as ICOs only offer vouchers for future products and services.
SDX is expected to offer trading in selected stocks, before other stocks and bonds are integrated into the system. Officials of the company revealed that there is a possibility of trading exchange-traded funds on the new platform. Assets that are not securities, including paintings and vintage cars could one day feature on SDX, the officials added.
SIX has been very open towards new technologies like blockchain. The implementation of blockchain technology will help SIX reduce costs and improve services.
SIX is not alone in its preference of blockchain, as there are other exchanges and trading platforms across the world aiming to use blockchain technology to boost their services. In Australia, the Australian Stock Exchange (ASX) is also looking to leverage blockchain technology to replace the current CHESS system. This will enable them to reduce costs and make Australia a leader in financial markets innovation.