12.01.2016

Tokyo Stock Exchange Eyes Blockchain

Launch of Consortium and Proof of Concept Testing for Capital Market Infrastructure Utilizing Blockchain Technology

JPX – Tokyo Stock Exchange, Inc. (TSE) is pleased to announce that TSE, Osaka Exchange, Inc. (OSE) and Japan Securities Clearing Corporation (JSCC) (JPX group companies) will form a consortium of Japanese financial institutions to continue to conduct proof of concept (PoC) testing based on past findings and discuss the possibility of applying blockchain or distributed ledger technology (DLT *1) to capital market infrastructure both from technical and operational perspectives.

Japan Exchange Group, Inc. (JPX) established an internal research group late last year to study the applicability of DLT to capital market infrastructure. Through our research and PoC testing, we concluded that while DLT has the potential to transform the capital market structure, further research and development is still needed before actually applying DLT to capital market infrastructure.
JPX group companies will cooperate with a wide range of stakeholders, such as financial institutions and DLT engineers, to make steady progress in verifying the technology.

TSE will create a test environment for PoC using Hyperledger fabric, the open source DLT platform, in cooperation with IBM Japan Ltd.. PoC testing by the consortium will start in spring 2017.

Point 1. Launch of financial institution consortium for PoC

We will seek participation from a wide range of Japanese financial institutions (*2) in order to gather broad industrial expertise. Members of the consortium will conduct PoC testing and discuss the applicability of DLT to the capital market infrastructure, both from technical and operational perspectives.

Point 2. Facilitating technological development

DLT applications for capital market infrastructure developed by TSE, participating financial institutions, IT vendors, and DLT startups will be deployed and tested in this environment. Verifying various applications will help to identify and address technical and service issues.

Point 3. Collaboration between engineers and financial institutions

We will consider a structure for efficient information sharing between the DLT engineer community and financial institutions through efforts such as training on DLT technology by DLT engineers and training on operational workflows by financial institutions.

(Visited 76 times, 1 visits today)

Other articles

  1. Wall Street Not First Mover on Blockchain
    From The Markets

    FINRA Assesses Blockchain

    Just how disruptive will distributed-ledger technology be for the securities industry?

  2. Coming Soon: A Blockchain ATS
    From The Markets

    SWIFT Eyes Blockchain

    Can distributed-ledger technology optimize global liquidity?

  3. Machines 'Learn' Front Office

    Prepare to see blockchain in action.

  4. Live Blockchain Platforms in 2017

    The new year will separate the blockchain 'haves' from the 'have-nots.'

  5. Blockchain Comes Out of the Lab

    The open-source blockchain project now counts more than 100 members.