Blockchain Technology & Stock Exchanges

Hey guys!

What do you think about using blockchain technology for operating stock exchanges?

Currently the ASX (Australian Stock Exchange) is processing $6 billion of equity trades each day using three 2½-metre-high racks of servers.

Their CEO, Dominic Stevens, is changing their clearing and settlement system over to blockchain technology and is getting the attention internationally on this project.

You can read more about it here:

The aim of this technology is to move financial markets closer to real-time settlement of trades, reducing systemic risk.

Note: Systemic risk is a market wide risk, that causes your stocks to drop in value. So it’s an unexpected event that affects the whole stock market, like a Trade War or interest rates rising, rather than a company or industry specific risk, like Musk taking to twitter :wink:

If there’s a market wide risk that causes your stocks to drop in value, then being able to execute a sell order closer to real-time means you can sell out of a stock more quickly if you don’t think it will recover or you want to mitigate your immediate loss.

What are your thoughts on this shift in technology?


@StephBrennan I think this is great movement forward for stock investors, more security while having better control of your investment actions will only be positive for future investors. :rocket:

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Blockchain technology or distributed ledger technologies are pretty usefull to improve real-time settlement of transactions and to improve liquidity across all exchanges, with one blockchain exchanges across the world can implement interoperability and they could allow a matching engine that could unite all the order book and make a deeper order book with less spreads on low liquidity markets and it would be an overall better experience for the financial markets.
Although Blockchain technology it’s still very new and in it’s early days, applications and usability is still being tested, very experimental. It’s indeed very similar to the internet days, with so much potential and yet so far from achieving scalability.