Published on July 12th, 2018 | by bitcoin0
New Regulation ‘Crucial’ to Clear Way for Dlt Shanghai Stock Exchange
Shanghai Stock Exchange (SSE), one of the world’s largest securities trading venues by market capitalization, is eyeing the use of distributed ledger technology (DLT) in the securities market.
As the world’s fourth largest stock exchange with a market cap of $5.12 trillion as of December 2017, the SSE is a non-profit organization directly administrated by the China Securities Regulatory Commission.
The first application use cases will be over-the-counter securities issuance and trading, as well as order book post-trading settlement.”
For instance, the SSE currently uses a third-party intermediary as custodian and for settling post-trading transactions, yet the use of DLT could fundamentally eliminate that system.
We suggest regulators treat the topic of DLT as a crucial study area moving forward … in order to develop a solid regulatory framework for embracing the financial innovation.”