The Shanghai Stock Exchange started to use a blockchain platform
Last autumn, the Shanghai Stock Exchange announced the possibility to conduct trading operations using blockchain technology. The process is fully regulated and controlled by the Chinese commission, which deals with the securities market.
The SSE is one of the largest exchanges in the world in terms of capitalization, shares of international and local companies are traded on it. In order to meet the current trends, the platform has developed a trading network based on the block market. It opens great opportunities for users, and most importantly, it is completely safe and does not contradict the laws of China.
The strategy of improving the Shanghai Stock Exchange was presented by its management last summer. At that time, several points were highlighted where the transformation would take place. The important point is to change the platform’s software to make it available for operations based on the blockage. Besides, SSE is planning to launch a number of projects where the distributed registry method will be used. The new network is available for market operators and other companies that work at the exchange.
Prior to the launch of the platform, the specialists conducted a research that examined the functionality of DLT-solutions for operations with different types of securities. The analysis involved processes at various stages of making a deal and placing instruments on the platform. It was found that the blocking technology is ideally suited for application at every stage of work on the market, from registration of a buyer to a transaction and closing of a deal.
According to analysts, the distributed registry method has significant advantages over other technologies and is an excellent solution for the financial segment of the country. The Exchange has no problems synchronizing all information about companies whose securities are traded on the floor, as well as integrated data about investors and intermediaries. The developers have improved a huge amount of information regarding transaction history, listing, storage of important data and the size of capital.
SSE representatives hope that the new system will make the processes on the stock market clear and transparent on the one hand and safe on the other. In addition, such solutions help standardize the activities of all traders, speeding up transactions.
Shanghai Stock Exchange was founded in 1990 and since then it has become one of the main trading floors not only in Asia but in the world as a whole. The company is not commercial, its activities are managed by a state commission, which controls the operations with securities in China.
It is a member of the Federation of Stock Exchanges of Asia and Oceania regions. There are two types of shares – A and B. The first type is calculated in yuan. The second type of securities is traded in dollars. It was introduced in the 90s and is used exclusively by foreign companies and individuals.