Derivatives exchanges see use for blockchain technology

Some of the worlds biggest futures exchanges are joining other major financial institutions by considering the benefits of blockchain technology within their business.

Some of the worlds biggest futures exchanges are joining other major financial institutions by considering the benefits of blockchain technology within their business.

Chief executives from CME, ICE and Eurex all highlighted the benefits of the underlying Bitcoin technology and how it could bring efficiencies to their exchanges and back-office functions in the derivatives market.

“We would be complete fools if we dismissed this blockchain development, something that could be an absolute disruptive agent of change to help our business functions. So I take it very seriously,” said Andreas Preuss, chief executive officer at German futures exchange Eurex.

A large number of banks and major financial institutions have made significant investments in researching the use of blockchain technology, and derivatives exchanges are no exception.

Chief executive officers from both CME and ICE also agreed that blockchain technology could be especially important for the back office.

Phupinder Gill, CEO of CME, said blockchain’s “potential to drive a lot of efficiencies in the back office is going to be transformative.”

“We are all looking at it,” he added. “All working… to make life more efficient.”

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