15 December 2017
visit www.aciworldwide.com

Researchers bring atomic clock timestamp precision to stock trading over distributed ledgers

24 August 2017  |  16266 views  |  0 Canary Wharf Clock

In a move that could aid MiFID II compliance, the Toronto Stock Exchange (TMX) and the UK's National Physical Laboratory have carried out an experiment which saw atomic clocks used to timestamp trades which were then recorded directly on a distributed ledger.

The 'Atomic Ledger' project recorded over 20 million transactions from three hours of trading to the ChainZy distributed ledger system from vendor Z/Yen.

The experiment is being linked to MiFID II legislation slated to arrive in January, which mandates more accurate timestamping traceable to Co-ordinated Universal Time (UTC) to promote improved transparency and better deals for customers.

UBS has already signed a deal with the NPL for a trusted timestamping service as a way to ensure compliance with the MiFID II RTS 25 timing traceability requirement.

The new test used nanosecond resolution high-frequency data from the TMX located in Interxions’s London data centre. The researchers timestamped digital orders of varying programing length written to execute a series of buy and sell instructions.

These were either logged using the atomic clocks at NPL, or logged with UTC plus a randomly generated time lag. The orders were then sent to a central clearinghouse also operating on UTC and written onto a ChainZy distributed ledger.

NPL is now set to work with Strathclyde’s Centre of Financial Regulation and Innovation to analyse the importance of timing in how orders are ‘cleared’ and says the results will provide insights into the need for precision timestamping in financial transactions, preferably at the microsecond level.

Leon Lobo, strategic business development for time and quantum, NPL, argues that the application of precise, traceable and certified timestamps as applied to the nodes of a distributed ledger system, will enable a trusted approach to the transactions as having existed at that point in time, across all platforms.
KeywordsMIFID

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UBS synchs trading infrastucture to NPL atomic clock

UBS synchs trading infrastucture to NPL atomic clock

04 August 2016  |  7628 views  |  0 comments | 6 tweets | 4 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.aciworldwide.comvisit www.thomsonreuters.info

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
10004 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
9427 views comments | 17 tweets | 36 linkedin
Brits flock to digital-only banksBrits flock to digital-only banks
7436 views 11 comments | 11 tweets | 15 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
6861 views comments | 19 tweets | 20 linkedin
hands typing furiouslyReshaping Customer Engagement & Da...
6252 views 0 | 4 tweets | 2 linkedin

Featured job

Find your next job