2018-7-12 10:57 |
Shanghai Stock Exchange (SSE), one of the world’s largest securities trading venues by market capitalization, is pushing for the use of distributed ledger technology (DLT) in the securities market.
The SSE published a research paper on Tuesday, which analyzed the use of DLT in various stages of a security transaction, such as the pre-trading customer registration, securities issuance and trading, and post-trading settlement.
As the world’s fourth largest stock exchange by market cap at $5.12 trillion as of December 2017, the SSE is a non-profit organization directly administrated by a government agency, namely the China Securities Regulatory Commission.
That said, the research paper suggested that a potential deployment of DLT in the Chinese stock exchange could still face a series of regulatory hurdles as it is in conflict with the current centralized registration and settlement 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.”
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