Application of Blockchain in Booking and Registration Systems of Securities Exchanges

TL;DR

This paper explores how blockchain technology can enhance security and trust in securities exchange booking and registration systems by designing a customized hybrid blockchain solution that considers legal and operational factors.

Contribution

It proposes a tailored hybrid blockchain framework for securities exchanges, integrating technological and legal considerations to improve transaction security and trust.

Findings

Blockchain can secure stock exchange transactions effectively.

Customized hybrid blockchain offers advantages over existing technologies.

Legal and regulatory factors are crucial in blockchain implementation.

Abstract

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.