The CEO of the London Stock Exchange (Nikhil Rathi), one of the world’s oldest stock exchanges (founded in 1698), believes that Blockchain could bring real benefits for issuing securities and settlement.
In a recent interview for CNBC, Rathi mentioned that the LSE has noticed several “interesting” ideas from rival stock exchanges (more prominently Spanish stock market operator BME testing blockchain for collateral pledge) and will see which ones “gain market traction” before making any moves in the space itself.
Although at the moment the move from LSE is just an expression of interest it is important to note than when dealing with innovative technologies as Blockchain and DLT there will always be different levels of risk-appetite depending on the organisation and the nature of the business.
As always when dealing with the most regulated industry in the World (the Financial Services one it is) it is understandable that - when dealing with such sensible information as LSE does - they do not want to be the first and would let others innovate and test until they are ready to take the jump.
Nikhil Rathi, CEO of the London Stock Exchange, hinted that the blockchain — which records data across a distributed network of computers rather than a centralized server — could find some use in the U.K.’s stock market.