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How Blockchain can help Public and Private Stock Exchanges? Part 2

Sometime back we wrote about Blockchain Technology and its potential role in the Capital Markets. We wanted to write an update to that article but there was so much to say that it turned into a full-fledged article. To give our readers a recap, capital markets is one of the industries in the financial space where industry experts are optimistic about the use of blockchain technology. Also, in this article, we will discuss the benefits and challenges of implementing blockchain technology and will explain how public and private platforms are integrating this technology.

Problem Statement: There are several intermediaries involved in a trade, like exchanges, central counterparties (CCPs), central securities depositories (CSDs), brokers, custodians and investment managers. For correct accounting and to complete the business transaction, intermediaries need to update their respective ledgers based on the messages exchanged between them. This essentially means that every time a transaction happens, additional messaging needs to be done. This creates a delay and also additional cost. Sometimes, to enable a particular transa ...

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