Operator of the Swiss Stock Exchange, SIX Group aims to roll out a blockchain platform to speed up trading in the second half of 2019.
The platform is dubbed SIX Digital Exchange (SDX), SIX chairman Romeo Lacher said the planned new SIX Digital Exchange (SDX) will initially operate alongside the existing SIX platform and that SIX supervisory board will “probably” make the final decision late in the summer, as it is still working out legal and regulatory issues with Switzerland’s financial markets regulator, FINMA. SIX Swiss exchange sees roughly $5.18 billion in daily turnover, and contains a capitalization of over $1.6 trillion
Lacher added that switching to distributed ledger will eliminate the several steps which can take days to complete a trade by knocking off two stages which can go a long way in reducing the trade lifecycle to fractions of a second.
In a report by Reuters it shows that SIX expects its blockchain-based SDX digital exchange to supersede its existing marketplace within a decade. Lacher said the company also has plans to launch its own Security Token Offering, which will offer investors an equity stake in exchange for capital, adding that the company is ready to add several digital assets to its platform.
Lacher clarified that SIX Group has not yet chosen the specific products to be listed, but it will initially introduce selected stocks. When fully launched, stocks will be followed by bonds and exchange-traded funds, as well as tokenizing other securities and non-tradeable assets such as paintings or vintage cars.
SIX first announced the new DLT-based platform last July, with CEO Jos Dijsselhof saying at the time: “This is the beginning of a new era for capital markets infrastructures. For us it is abundantly clear that much of what is going on in the digital space is here to stay and will define the future of our industry.”
Once the new platform is live, SIX plans to use it itself to raise funds later in the year, according to Reuters.
“We want to start with our own security token offering,” Lacher said.