SZSE implements blockchain registration and custody system in regional equity market

Source: Shenzhen Stock Exchange

On September 28, Shenzhen Securities Communication Co., Ltd. (SSCC), a subsidiary of Shenzhen Stock Exchange (SZSE), and Beijing Equity Trading Center Co., Ltd. (BETC), a subsidiary of Beijing State-owned Capital Operation and Management Center (BSCOMC), jointly held a launch ceremony for the blockchain-based registration and custody system for the Beijing Regional Equity Market, and signed a letter of intent for cooperation on the research and application of the blockchain technology.

Responsible persons from the Information Center of the China Securities Regulatory Commission (CSRC), SZSE, BSCOMC, and relevant institutions were present at the ceremony. This event marks an important move by the two sides to meet the requirements in the Master Plan for China (Beijing) Pilot Free Trade Zone issued by the State Council, boost innovation of financial technology, and improve the service capacity of financial infrastructure by scientific and technological means. It is also another practical application by SZSE to facilitate the digitization of the regional equity market by leveraging its edges in technological innovation and relying on its financial blockchain platform after the cooperation with Guangdong Equity Exchange in blockchain technology this July.

CSRC highly values the innovative applications of the blockchain technology in regional equity markets and has actively promoted the development of pilot projects, said an official from the Information Center of the CSRC. As the blockchain-based equity registration and custody system went live, the business data can be exchanged with the regulatory data across chains. This is a meaningful exploration into advancing the applications of the blockchain technology in industries and supporting the building of regional equity trading markets. CSRC hopes that SSCC and BETC can give full play to their respective edges, complement eachother’s advantages, and achieve win-win outcomes by building on deepening the cooperation this time, so as to make more contributions to the benign development of the blockchain technology in regional equity markets.

An official from SZSE said that SZSE has implemented the plans and requirements of the CSRC conscientiously, and explored and practiced the innovative application of blockchain in the capital market. Besides, SZSE has established a blockchain working group particularly and taken the lead in building a platform for applying the blockchain technology in industries, achieving positive and practical application results. Next, SZSE will continue to tap its technological advantages in the blockchain platform, draw on the experience of scenario applications, provide the regional equity markets with comprehensive services and personalized solutions, and boost the building of a digital and innovative ecosystem in the multi-tiered capital market.

As one of the first group of the institutions under the blockchain pilot project of CSRC, BETC has built a registration and custody system based on the blockchain technology preliminarily, achieving whole-process and on-chain management of the registration and custody business data, and meeting the regulatory demands for CSRC and local regulatory authorities more efficiently, said the principal from BSCOMC. BSCOMC will further deepen its cooperation with SZSE, striving to bring more advanced and reliable technical services to micro, small, and medium enterprises. Moreover, they will join hands to build a benign blockchain ecosystem for the regional equity markets, which is interconnected, mutually recognized, and mutually trusted.

In recent years, SZSE has accumulated abundant experience in the development and applications of the blockchain technology in the capital market relying on the Financial Technology Research and Development Center of the Securities and Futures Industry (Shenzhen). Additionally, it has conducted in-depth exploration and practice in terms of the building of the blockchain technology platform, the applications of the blockchain in industrial scenarios, and the development and building of the blockchain in industries. In 2017, SZSE took the lead in launching the Shenzhen Stock Financial Blockchain Platform in the industry, exploring the applications in business scenarios such as the storage and certificate chain, credit standing chain, asset securitization, and OTC trading. Among them, the application scenario of the chain of deposite has been in the phase of engineering implementation. In 2019, SZSE successfully supported the storage and certificate business of the wealth management products of Great Wall Securities, in which nearly 150,000 pieces of business data have been put on the blockchain for preservation. In May 2020, SZSE, in collaboration with five brokers, worked on the special subject on the industrial blockchain technology and joint application development, arranging for industrial institutions to exchange and share the results of the industrial blockchain studies, and actively building cooperative ecology for applications of the blockchain in industries, aiming to jointly improve the efficacy of technology-enabled regulation, assist in the innovation development of digital applications in industries, and better promote the sound and stable market operations.

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