SIX Digital Exchange launches DLT-based trading and settlement prototype

SIX Digital Exchange launches DLT-based trading and settlement prototype

Swiss stock exchange SIX has launched a prototype of its distributed ledger technology-based digital exchange and central securities depository. Meanwhile, trading has started on Boerse Stuttgart Digital Exchange.

SIX Digital Exchange (SDX) promises to be the world's first end-to-end exchange for digital assets when it launches properly - a year behind schedule - in the fourth quarter of 2020, offering listing, trading, settlement and custody service.

The prototype is designed to demonstrate that a distributed CSD - based on DLT - can be integrated with a central order-book stock exchange model to ensure fair market conditions for all.

Test-cases will showcase the potential of SDX’s "riskless" trading model, as well as settlement on DLT. Early stage functionality will cover digital security token issuance as well as live trading and instant settlement. This will include the cash-leg of the transaction embracing the concept of a payment token as well as access to a distributed portal where it would be possible to monitor transactions across specific DLT member nodes.

Participants making trades will execute them via a facility resembling the existing Swiss Stock Exchange infrastructure. Similarly, the asset token issuance process on SDX makes use of the Swiss Stock Exchange’s Connexor service.

Thomas Zeeb, chairman SDX, says: "The launch of this prototype is a major milestone in creating a credible digital infrastructure for moving our industry forward. We are now one step closer to demonstrating the viability of our vision for the financial markets of the future and, ultimately, for the way people and businesses access capital."

Separately, trading has started on Boerse Stuttgart Digital Exchange, giving investors direct access to a platform where they can buy and sell cryptocurrencies.

"We believe blockchain is set to bring about significant changes in the financial industry, and we want to leverage its potential to create the trading venue of the future,’ says Peter Großkopf, CTO, Boerse Stuttgart Digital Exchange.

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