SIX Swiss Exchange and Nasdaq are collaborating to develop blockchain technology for SIX’s structured products unit.
The two stock exchanges announced Nasdaq will provide its distributed ledger technology (DLT) for a Minimum Viable Product to SIX’s OTC structured products business.
The new solution, which has been developed in collaboration with tech firm Chain, will integrate with several systems currently managed by SIX and use the DLT capabilities at the core of the Nasdaq Financial Framework.
The new expertise allows SIX to investigate how it can leverage blockchain technology for the post-trade environment, the group said in a statement.
‘We are always keen to explore innovative technologies which could serve as basis for wider commercial offering,’ Chris Landis, Division CEO of SIX Swiss Exchange said.
‘Working together with Nasdaq reinforces our commitment towards being an exchange at the technology forefront.’
The two exchanges have been partners for more than 10 years and have a technology contract.
The contract, which includes trading technology for SIX equities, ETFs, structured products funds and fixed income markets, was extended in October 2016.
Commenting on the partnership, Lars Ottersgård, executive vice-president and head of market technology at Nasdaq, said: ‘This project with SIX Swiss Exchange, one our long-term partners, is a prime opportunity to explore and implement blockchain technology in a controlled, highly collaborative environment.’
Big on blockchain
SIX Securities Services, a division of the SIX Group, has also strenthened its blockchain capabilities by partnering up with Digital Asset Holdings.
In September 2016, the unit announced plans to build a prototype for securities lifecycle processing by using its new partner's platform.
The agreement came as part of a bid to accelerate development plans for SIX and leverage its experience in the area, which it says will reduce inefficiency, costs and risk in financial services.