TRADING VENUES

SGX to use blockchain for bond trading

SGX will be exploring blockchain use for fixed income trading.

By Hayley McDowell hayley.mcdowell@strategic-i.com March 10, 2017 1:10 PM GMT

The Singapore Exchange (SGX) will explore the use of blockchain technology for fixed income trading.

The Monetary Authority of Singapore (MAS) explained SGX will lead the way in focusing on making the trading and settlement of fixed income cycle more efficient with blockchain. 

MAS has now partnered with R3 to explore how blockchain technology can be applied to securities settlement and cross-border payments.

It successfully completed its proof-of-concept project for inter-bank payments and automated collateral management in March. The consortium - comprising of MAS, R3 and a group of financial institutions - has commissioned Deloitte to produce a report on the specific aspects of blockchain that are most suited to settlement systems.

MAS is also in conversation to link Singapore with other countries to use blockchain and allow cross-border payments to settle directly using central bank accounts.

Sopnendu Mohanty, chief FinTech officer at MAS, explained the project as a whole reflects the authority’s commitment to “co-create concrete use-cases for technologies like blockchain.”

Tim Grant, CEO of R3’s lab and research centre, who is also a member of MAS’ international technology advisory panel, added the true progress in advancing the implementation of blockchain would be achieved by bringing central banks and technology partners together in an open setting.

He added the project has proved it can “yield demonstrable results and we hope that the progressive stance of all the participants in this project, and especially that of MAS, will inspire similar work in other jurisdictions going forward.”