The distributed ledger technology will help to cut costs and reduce risk
Abu Dhabi Securities Exchange (ADX) has signed an agreement with financial messaging services firm Swift and seven central securities depository (CSD) companies to use blockchain technology in post-trade operations and capital market transactions to cut costs and risks, it said on Tuesday.
The nine entities signed a memorandum of understanding, under which they will collaborate on distributed ledger technology (DLT) in areas that include research and development, identifying, defining and developing additional use cases for DLT in a CSD environment, and the post-trade landscape, such as services for different kinds of DLT-based digital assets, ADX said. The bourse said it was the first in the region to enter such an agreement.
“The exchange will open channels of constructive dialogue with various stakeholders to identify the common principals, standards and business rules needed for the successful implementation of DLT in post-trade operations, with the aim of enhancing the speed and security of capital market transactions,” said Rashed Al Blooshi, chief executive of ADX.
He added that DLT would bring “more efficient clearing and settlement operations through the reduced requirement for human input, increased system flexibility and data integration, and reduced costs and time”.
Source/More: Abu Dhabi Securities Exchange signs agreement with Swift and other parties to adopt blockchain technology – The National