Swiss Exchange to Launch Blockchain-based Digital Exchange

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Switzerland based stock exchange SIX will test blockchain integration for its upcoming parallel digital trading platform SDX in the second half of 2019.

SIX Swiss Exchange sees approximately 5.19 billion Swiss francs (CHF) in a daily turnover and has a market capitalization of over 1.67 trillion CHF.

CEO Mr. Jos Dijsselhof told in an interview that the company had selected the technology for time efficiency and enhanced security it can offer over all stages of stock trading and settlement:

“The fact is, it takes two days for the buyer of stock to become the owner. The trade itself only takes a fraction of a second, only after that payments have to be settled and titles transferred. If we put it all on our digital exchange, then the entire process takes just a couple of seconds. This makes the market more efficient, but at the same time further takes risks out of the system.”

Mr. Jos Dijsselhof added that entire digital, blockchain-based stock trading would not only reduce risks but broaden the range of tradable titles, asserting his ambition that SIX would succeed in creating “a complete new stock market on the blockchain with completely integrated trading, handling and custody of digital assets.”

In an interview with Reuters, SIX exchange chairman Mr. Romeo Lacher noted that the exchange intends to finalize a start date for the new platform in late summer with the exact date remaining subjected to legal and regulatory interpretation with Swiss market watchdog the Financial Market Supervisory Authority.

Reuters further reported that SIX expects its blockchain-powered SDX digital exchange to succeed its current marketplace in a decade. Mr. Lacher stated that the company has further plans to start its own Security Token Offering, which will grant investors an equity stake in exchange for capital.

Anonymous SIX officials told Reuters that SDX would start by rolling out support selected stocks, followed by bonds, and possibly exchange-traded-funds (ETFs).