The World Federation of Exchanges (WFE) said there needs to be clarity over blockchain regulations before adoption can become more widespread.
Reuters reported Thursday that the consortium polled its members, among them large banks, and the lure of the technology remains intact, as it would cut trading costs. Banks also are interested in the security measures promised by blockchain, defined by the newswire as a “tamper-proof shared ledger” that processes and settles transactions automatically via technology and algorithms.
An overwhelming majority of trading venues and clearing partners — 84 percent of 24 members polled — said they were in the midst of exploring the use of or actively evaluating distributed ledger technology.
In addition to concerns over regulations, these firm said barriers to wider adoption of distributed ledgers center on technology — namely the lack of technical skills yet in place to deal with the new systems and uncertainty about the technology itself.
A statement from Nandini Sukumar, chief executive officer of the WFE, said:
A powerful finding from our survey is the overwhelming number of FMIs who are already progressing work around DLT. This shows we are firmly moving towards a world where the technology could become applicable to global capital markets. DLT has been a key strategic focus for the WFE Post-Trade Working Group, and today’s research report is the first in a series of public material we will be issuing on the topic.
The WFE conducted the survey in July and August of this year in conjunction with the regulatory body known as Iosco, and the findings will tie into broader research scheduled to be published later in the year, focused on fintech and its application in the global markets.
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