Digital currency exchange competition swelled again, while the traditional exchanges are secretly hard, can meet the whole encryption exchange pattern of the industry is bound to experience a war.
“In the long run, of course I think the blockchain technique is fascinating, disruptive innovation. Although the whole network at the same time because of the need to deploy and makes it run more difficult, but I think it will be very interesting in our business in a force.”
Freedman (Ardena Fredman). General aDNA, head of one of the world’s largest stock exchange, the Nasdaq Stock Exchange, in a Bloomberg interview for the evaluation of block chain technology as saying.
In April last year, the stock exchange head even said, for some time, the NASDAQ would consider becoming a crypto currency exchange.
Of course, over time the NASDAQ will consider as a crypto currency exchange. “
Behind at first glance seems to “special” words and deeds, is deep in the NASDAQ block chain and cryptocurrencies field for six years, the city of the NYSE also did not relax in the new field of the same old rivals in the game, such as the LSE, Swiss Exchange, Hong Kong stock exchange, etc., in their own in the field of exploration.
Two extra strong competition
The main stock exchange ranked (by volume calculation, as of 2018.11.30 |) source: world-exchanges.org
According to incomplete statistics, as of 2018.11.30., the world’s top 20 stock exchange, there have been 10 exchanges including the NYSE, NASDAQ, HKEx, LSE, participated in the study, block chain technology, application and promotion.
From the parties involved in the situation, in the field, the NYSE and Nasdaq were still aotou.
The NYSE hand holding $182 million in financing Bakkt this super weapon, and as early as 2015 Coinbase investment exchange (but did not disclose the specific amount of investment), and launched the world’s first stock exchange by the calculation and publication of bitcoin index, the index in January this year has been expanded to more than 60 encryption currency.
Nasdaq, is moving in the direction of the application block chain mining technology, as early as 2013 began to explore. In 2015, the launch of Linq, the block chain products allowed companies to issue shares to private investors “; in 2016, it launched the financial framework of NFT system, as to provide all kinds of services to clients worldwide blockchain tools, then in 2018 October, the framework with Microsoft cloud service with Azure, to further enhance the performance.
Since the current CEO to 1 2017 appointed general aDNA, deepen its NASDAQ in the field layout. In May 2017, the NASDAQ Citibank launched a joint block chain platform Chain Core, providing end-to-end transaction process for private securities; in June 2018, the NASDAQ settlement department and multi industry companies, has developed a proof of concept (PoC) block chain platform, aims to make a margin call through distributed network.
In August 2018, the central bank with the Singapore cooperation in the development of digital assets; December 2018, it announced the first half of 2019 is expected to start the futures investment and currency exchange, encryption ErisX; in 2019 February, launched the BTC index (BLX) and ETH index (ELX), the two index is integrated into the well-known NASDAQ index.
The NYSE and Nasdaq this pair, other traditional stock exchange also gradually enter the field of chain block.
Ranked seventh on the London Stock Exchange as early as 2015 began to explore. In November this year, the London stock exchange with the London Clearing House, Societe Generale Bank, the Chicago Mercantile Exchange (the first launch of bitcoin futures exchange), UBS (UBS) and European clearing center (Euroclear) working group jointly set up the general ledger of distributed transaction, explore how to use block chain in the transaction process;
In July 2017, the LSE announced a partnership with IBM, to create a platform for SMEs to block chain securities;
In May 2018, the LSE established an internal working group, its business, supervision and legal team together to jointly study the application block chain technology;
In August 2018, a focus on encryption company Argo listed on the London Stock Exchange, the first shares usher in a block chain;
In March 2019, the S & P 500 company Invesco in the LSE launched block chain ETF, 48 companies investment targets including TSMC, Chicago commodity futures exchange group, Intel, AMD, etc..
Compared to the London Stock Exchange in the block chain of small strides in Switzerland SIX exchange is the “great leap forward”, more close to two U.S. move counterparts.
SIX Exchange announced in February this year, it will launch a digital exchange based on block chain. From the CEO Jos Dijsselhof statement, the digital exchange process to accelerate the liquidation of funds and transfer, improve the efficiency of transactions.
“The transaction itself takes a very short time, but also need to pay after the completion of liquidation and equity transfer. If we put these processes on digital exchange, the whole process takes only a few seconds to complete.”
Later in March, SIX also announced that it will rely on the exchange of Corda block chain R3, some of the mortgage assets through securitization (tokenize equtiy). In March 5th, SIX announced the official website of the stock exchange, began trading financial derivatives based on Ethernet square index (ETP). As Cointelegraph said, SIX exchange is likely to end the whole through securitization.
If the above exchange act temporarily or stay in the exploration level, the Australian Stock Exchange (ASX) is the core of their business watch. In November 2017, ASX using distributed technology to provide books stock trading system after the test is complete, the exchange also announced the settlement system of CHESS application of the system to replace the existing transaction. The Shanghai stock exchange research report pointed out, ASX is the world’s first mainstream exchange application block chain technology on core business.
Chinese exploration area is relatively small. The most “avant-garde” is the Hongkong stock exchange in 2017, it announced the launch of HKEX Private Market in the private market, using block chain technology to provide a stock registration, transfer and disclosure of information sharing service platform for early-stage companies and their investors. Previously, it was also announced that, in 3-4 years will be used to block chain technology transaction settlement system plan, to reduce transaction costs.
Characteristics and logic of giant test
In order to expand and optimize their business oriented.
Whether in the United States, Europe and Asia Pacific stock exchange, are very stressed by the transformation of their own business block chain technology. As a distributed technology books block chain, either in KYC, anti money laundering, the disclosure of information before trading links, or stocks, securities issuance and transfer of bonds, a collection of tools, derivatives trading in, or registration, custody, clearing, settlement, data sharing and other trading links, can play relatively large function.
Whether it is the use of Linq block chain NASDAQ equity liquidation, through the financial framework based on block chain to accelerate transaction delivery, both the management of payment and settlement transactions; or the Swiss SIX exchange through digital exchange block based on chain to accelerate the transaction process; and the ASX (ASX) by using the distributed system to replace the existing trading account after the settlement system CHESS. Is this train of thought.
With the cooperation of the world focus on perpendicular and horizontal, “indigenous” encryption
As mentioned above, the NYSE is 2015 in the Coinbase C round of financing. The NASDAQ in September 2015, led to the blockchain technology service provider Chain.com a $30 million financing, the July 2018 acquisition of the Swedish market and real-time clearing technology provider Cinnober, the encryption of managed services and multi signature scheme can effectively solve the problem of trust hosting services, is one of the popular solution. 1 2019 then led the blockchain startups Symbiont a 2000 million dollars financing.
While both the ASX new clearing system, or the Swiss SIX exchange through securitization attempt, behind the support of the company, are indigenous block chain field.
The traditional stock exchange giants to look for encryption and the world’s indigenous companies, on the one hand is the latter for the research and application of block chain technology more deeply familiar, can better play the advantages of block chain technology; on the other hand, the traditional exchange giant saw passes with the relationship between the stock and / or even substitute financing instruments such as bonds the traditional enterprise, the giants need as soon as possible acquisition or learning to consolidate their moat outside the box, even to seize the initiative.
Pay high attention to compliance, emphasizes the maintenance of relations with regulators
The NASDAQ is a very typical example. The daily planet article pointed out that in 2018, the NASDAQ almost attended all about block chain supervision meeting: August 19th, sponsored by the United States Republican congressman Warren Davidson of the ICO supervision meeting; global block chain assembly in September 13th; in September 25th the “Roundtable for crypto currency determined legislation”; the October 18th International Expo in November 10 and Nasdaq futures options he held the encryption summit. The CEO also said, “it is necessary to pay attention to supervision.”
In addition, the NYSE and the London Stock Exchange and the Hong Kong stock exchange, the application of a block chain technology with the supervision department of a large number of communication and negotiation.
This is special for the exchange of their position, the height of compliance is an inevitable choice for the position of nature; on the other hand, through consultation and interaction with regulators, can contribute to the regulatory framework for the giants of the business development, they can also promote the win in the blockchain era.
The traditional exchange giants to enter the block chain, on the one hand to optimize its own business, as the securities times pointed out, block chain can improve the efficiency and reduce the issuance of securities securities transaction costs, improve asset reliability and consciously credit support. It also can enhance the efficiency of government regulation.
On the other hand, with the entry of more traditional exchanges, local exchange encryption may be more acquisitions and mergers, if taking into account the like Bakkt platform will be more and more, the encryption exchange pattern of the industry reshuffle inevitable; at the same time, they enter, will further push up the industry compliance with safety standards, contribute to the mainstream block chain and encryption currency industry standardization.