According to a news reported on February 4, SIX Swiss Exchange, Switzerland’s principal stock exchange will be testing integration of blockchain for its upcoming SDX platform (digital trading platform) in the second half of 2019. The exchange has a market capitalisation of more than 1.67 trillion CHF and SIX Swiss exchange witnesses a daily turn over of about 5.19 billion CHF.
Jos Dijsselhof, the CEO of the exchange stated that the technology was chosen primarily for the time efficiency it showed along with increased security that it can offer across all stages of stock trading and settlement: The fact is, it takes two days for the buyer of stock to become the owner. The trade itself only takes a fraction of a second, but after that payments have to be settled and titles transferred. If we put it all on our digital exchange, then the whole process takes only a few seconds. This makes the market more efficient, but at the same time also takes risks out of the system.
The CEO of SIX further added that a blockchain oriented and a digital stock trading along with minimising risks will also increase the range of tradable titles. Dijsselhof further stated that his ambition is to make sure that SIX succeeds in developing ‘a whole new stock market on the blockchain with completely integrated trading, handling and custody of digital assets.’ Romeo Lacher, Chairman – SIX Swiss Exchange noted in one of his interviews that the exchange aims at locking a day to launch the platform in the second half of 2019.
According to reports by Reuters, SIX Exchange foresees its digital exchange (SDX) to repudiate its market place at present in the next ten years. Chairman of SIX also said that the company has plans of launching its own Security Token Offering in order to offer equity to investors in exchange for capital. According to unconfirmed sources to Reuters, SDX will start with supporting selected stocks, bonds and maybe exchange-traded-funds (ETF).