The London Stock Exchange Group (LSEG) is teaming up with IBM to build a blockchain solution in order to digitize the issuance of securities for small and medium enterprises (SMEs) in Europe.
According to the official release, the solution, being built by the LSEG's Italian exchange operator Borsa Italiana in collaboration with IBM, aims to simplify the tracking and management of shareholding information. It seeks to create a distributed shared registry containing a record of all shareholder transactions, helping to open up new opportunities for trading and investing.
"Through our work with IBM on this blockchain solution, Borsa Italiana is taking the lead in transforming the way European SMEs can manage their shareholder data and at the same time expand credit access - all on a trusted digital platform," said Raffaele Jerusalmi, CEO, Borsa Italiana.
Built on Hyperledger Fabric version 1.0, the system would help to ensure secure sharing of highly sensitive securities data amongst permissioned network participants. The solution is also built to achieve interoperability with LSEG's existing systems, promoting efficiency, and business continuity.
"Sharing secure and transparent critical network data across shareholder networks is difficult using traditional system," said Marie Wieck, general manager, IBM Blockchain. "Blockchain is poised to help remove some of these barriers in traditional methods for the transfer of value – much as the Internet did for the exchange of information in the late 1990s."
The solution is undergoing an initial test phase with a small group of partners and clients. It would replace the paper trading certificates with a more digitized, streamlined and transparent process, enabling issuers, regulators, and investors to have increased insight into company information. It would also help expand SMEs’ access to credit and enable them to set up new trading networks and obtain funding by sharing financial data in a secured and transparent public arena.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
