Two Collaborate on OTC Structured Products

Announcements, FinTech | August 10, 2017 By:

SIX Swiss Exchange, a subsidiary of SIX Group, has teamed with Nasdaq to investigate the prospect of using blockchain technology in its over-the-counter (OTC) structured product business.

The blockchain initiative is part of SIX Swiss Exchange’s long-standing trading technology contract with Nasdaq. Nasdaq will work closely with its technology partner Chain to provide distributed ledger technology (DLT) for a Minimum Viable Product (MVP) for SIX’s OTC-structured products business. The solution will integrate with other systems managed by SIX that use DLT functionalities at the core of the Nasdaq Financial Framework.

With the MVP, SIX would gain first-hand experience on the implementation of a DLT solution, as well as investigate how to leverage blockchain technology for SIX and its members in the post-trade environment.

“Nasdaq is a strong believer in the power of emerging technologies to transform financial markets,” said Lars Ottersgård, Executive Vice President and Head of Market Technology, Nasdaq. “This project with SIX Swiss Exchange, one of our long-term partners, is a prime opportunity to explore and implement blockchain technology in a controlled, highly collaborative environment.”

“We are always keen to explore innovative technologies which could serve as basis for wider commercial offering,” said Chris Landis, Division CEO SIX Swiss Exchange. “Working together with Nasdaq reinforces our commitment towards being an exchange at the technology forefront.”

The SIX Group has already conducted a number of experiments in the blockchain sphere. SIX Securities Services, for instance, has developed a distributed ledger-based bond issuing prototype through a partnership with Digital Asset Holdings.