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Shanghai Stock Exchange Wants To Regulate

The SSE, one of the largest in the world by market value, has been paying a special interest to DLT. Research by Singapore’s leading market has explored the applications of distributed ledger tech on the market and how it will affect securities transactions.


DLT

In a report by the SSE, the exchanged discussed further research into DLT and its applications on the market as well as its performance during any transaction. Among the inspected uses were transaction efficiency, trade finalization, user registration and more.

Among a few highlighted benefits of DLT were discussed in the report, namely the Chinese financial industry and its DLT use. According to the report, the few proposed beneficial uses would include faster transactions compared to China’s current traditional exchange settlements and the 24-hour waiting requirement for finalization.

The Singapore Stock Exchange is regulated by the CSRC. As of late last year, the SSE is worth five trillion dollars in market value and is ranked as the fourth top market exchange in the world. Adding on, the report explains that distributed ledger technology is being adopted globally and will reshape financial industries around the world. 

Conflicted

According to the paper, due to China’s current regulations and effective laws, introducing distributed tech to its national exchange could result in even more regulations being enforced since DLT does not align with the regulations in effect right now.

As of now, Singapore Stock Exchange’s use of third-party individuals to overlook transactions following concluded trades could cease to exist through the introduction of DLT and governmental authorities would be required to design and enforce new, updated regulations to protect a DLT-based market.

As a final comment, the paper explains that regulators should properly study DLT and issue fair, studied regulations that would provide their intended purpose without hindering any advancements of the technology. 

2 years ago

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