Topic: 2018-02-13 CSE aims to be Canada’s first blockchain platform for trade clearing (Read 106 times)

Extract:

Canada’s upstart exchange is applying to use the technology to provide real-time clearing and settlement of securities

The Canadian Securities Exchange, Canada’s upstart stock-trading platform, is aiming to create competition in securities clearing and settlement using blockchain technology.

The CSE plans to apply to regulators for recognition of the new clearinghouse, which aims to provide real-time clearing and settlement that would cut costs and reduce errors when compared to conventional clearing services.

The platform, using technology licensed from New York-based Fundamental Interactions Inc., would use tokenized securities called Securities Token Offerings (STOs) for both equity and debt issues, the CSE said in a release Tuesday.

http://business.financialpost.com/news/fp-street/cse-aims-to-use-blockchain-to-bring-competition-to-trade-clearing-and-settlement


“The Canadian Securities Exchange expects to be the first recognized exchange in Canada to introduce a fully developed blockchain platform for trading, clearing and settling tokenized securities,” said Richard Carleton, chief executive of the CSE.

“Our platform represents an intersection between blockchain and the capital markets that delivers on blockchain’s promise to disrupt conventional transaction and record-keeping mechanisms, thereby providing tangible benefits for market stakeholders.”

Proponents of the distributed ledger technology behind blockchain have pinpointed clearing and settlement of stocks and other securities as an area ripe for innovation because it is still heavily dependent on paperwork and transactions that can take days to settle.