Blockchain Technology Explored By Spain’s Securities Regulatorbr>
The Spanish National Securities Market Commission (CNMV) has announced that it has been collaborating with a group of financial institutions on a blockchain project over the past year.
The CNMV is the Spanish government agency responsible for the financial regulation of the securities markets. It is an independent agency that falls under the Ministry of Economy, Industry and Competitiveness. The aim of the CNMV is to ensure stability and transparency of financial markets, protect investors and make sure that brokers and intermediaries behave correctly.
Called Fast Track Listing, the blockchain project’s objective is to simplify processes and reduce the amount of time needed to register issuances. Project participants include Bolsas y Mercados Españoles (BME), the operator of all stock markets and financial systems in Spain, Banco Santander, BBVA, BNP Paribas, CaixaBank, Commerzbank and Société Générale.
According to the CNMV, the project has included the completion of a proof-of-concept (PoC) test which has been carried out successfully and consisted of the registration of an issuance of warrants. During the test phase, the PoC proved that it is possible to execute the process in 48 hours compared with an average time frame of more than a week – a reduction of over 70 percent.
The CNMV said the PoC has proven that the use of blockchain technology can improve efficiency in terms of time and resources, as well as increase the security and traceability of processes. It added that it will continue exploring the possible uses of this technology in its processes and carry on with the project.