This London Stock exchange was founded in 1571, making it one of the oldest exchanges in the world. London Stock Exchange Group was created in October 2007 when the London Stock Exchange merged with Milan Stock Exchange, Borsa Italiana. The Exchange had a market capitalization of US$4.59 trillion as of April 2018 and currently in Paternoster Square in The city of London.
The CEO Nikhil Rathi, indicated in an interview this week with CNBC, that the blockchain — an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way unlike a centralized server — could be useful in the U.K.’s stock market.
Rathi said, “You can certainly see distributed ledger technology having an application in the issuance process,” he told. “I can see that technology being used in settlement too.” He also stated that the exchange has noticed an “interesting array of different ideas” from rival venues, adding “we’ll see which ones gain market traction.”
Clearly, the LSE has received pitching ideas from innovators and/or Developers that is interestingly catching the LSE’s intuition enough to explore Blockchain Technology. London’s exchange recently bought a minority stake in Nivaura, a company that claims to have issued the world’s first automated cryptocurrency-denominated bond. SIX exchange of Switzerland is reportedly looking to launch a blockchain-based platform to speed up the trading process, while the Gibraltar Stock Exchange has launched digital versions of securities like corporate bonds.
The CEO of the LSE confirms the exchange has been testing the issuance, admission, and trading of equities with Nivaura in what’s called a regulatory “sandbox.” There were no comments however on whether that testing would eventually hit real-life markets.
Against the recent warning of the IMF Director, Rachel Lagarde, where she implied that digital currencies of the blockchain platform are shaking the system, more regulatory bodies seem to be joining the Blockchain space. Rathi said in this light despite the LSE’s concurrent application of blockchain technology that, while he supported competition and innovation in the capital markets business, some “extreme manifestations” in the crypto space were cause for “a little bit of caution.”
Credits – BeBusinessed, Wikipedia, CNBC.
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