Most global exchanges are testing distributed ledger technology

Today, the global trade organization for financial exchanges released a new survey on distributed ledgers, highlighting how industry insiders feel about the technology.

The World Federation of Exchanges (WFE) announced that 24 companies participated in the survey, including exchanges, central securities depositories and core counterparties, collectively known as "financial market infrastructures."

There were 25 participants in total, 21 of which said they were actively exploring applications for the technology. Companies that participated in the survey included Nasdaq, CME Group, Australian Securities Exchange, London Clearing House and Japan Exchange Group, among others.

Drawing heavily on similar past publications, the report outlines how the market is exploring the technology and developing proof-of-concepts, while also addressing regulatory and cybersecurity issues.

The WFE report states:

“For the most part, FMIs are focused on applications that improve process efficiency and reduce costs, but some are looking for new service lines and revenue opportunities. As the technology is new to the country, especially for capital markets, FMIs cannot be certain to what extent the technology will live up to its promises.”

Furthermore, the survey highlighted that market incumbents mostly prefer user group settings, especially the blockchain project called Hyperledger and the Post-Trade Distributed Ledger Group.

The WFE was founded in the early 1860s and its membership includes more than 60 trading services.