Application of Blockchain in Booking and Registration Systems of Securities Exchanges
This work addresses security concerns in digital securities exchanges for stakeholders like investors and regulators, but it is incremental as it builds on existing blockchain applications without introducing a new paradigm.
The paper investigates applying blockchain technology to secure stock exchange transactions, proposing a customized hybrid blockchain design that addresses both technological and legal aspects to offer benefits beyond current technologies.
Securities exchange being digitalised and online, security of information and data has become a major concern. Blockchain (BC) technology, being distributed and immutable in nature, has proved to the "Trust Machine" eliminating the need for third-parties. Authors of this paper investigate how Blockchain can be used to secure stock exchange transactions, with an especial focus to the technological as well as legal aspects of such applications. Considering the intricate operational structure of the securities exchange, the research proposes to design, develop and implement a hybrid BC, customised according to the need of the respective stock exchange. The study suggests that the use of such BC can bring many benefits which the other technologies currently being used cannot offer. However, during the design process of any such application using BC, the relevant laws and regulations of the corresponding country need to be considered.