Santiago Stock Exchange, Chile’s largest Stock Exchange is in planning to implement Blockchain technology solution by partnering up with global technology giant IBM.
The Blockchain based securities lending solution will enable Chile’s securities lenders, banks, stock exchanges, institutional clients and regulators, to exchange information, while reducing the time it takes for relevant back-office processes by Fourty percent as explained by IBM
Usually it takes two-to-three days after for trading signing contracts, adding the assets, and the intermediary needs to create the collateral, but now all of that will be put in a block that will be queried by different intermediaries.
One of the spokesperson of the Stock Exchnage mentione in an interview that “we will now seek to create a private blockchain network for the exchange of this information, whereby participating banks and regulators will also operate nodes. The key thing that blockchain will provide is transparency related to the collateral in the lending short sale. Regulators and pension funds here in Chile, they have to know who the lender and the borrower are, and what kind of collateral they have in transactions”
The blockchain-based system will be made live and operating in parallel with its existing system over the next three-to-six months, with the goal of migrating the process completely to a distributed ledger next year.
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