SEB, Nasdaq partner to test blockchain-based fund trading platform
Swedish financial services group SEB has collaborated with Nasdaq to test a new fund trading platform based on blockchain technology.
The platform is aimed at enhancing efficiency in the processing of buying and selling fund units by linking all parties to a distributed database.
The platform will enable fund companies, distributors and others to share a distributed database on which all transactions and changes will immediately be registered and all participants can view them instantly. The fund market currently administers purchases and sales of fund units manually as they don’t have Central Securities Depository (CSD).
Nasdaq acting head of investor services Göran Fors said: “With the help of a blockchain we can create a faster, simpler, more effective and reliable handling of flows in funds.”
”We will together with Nasdaq continue to develop the technology and we have also opened up for collaboration with additional interested parties. This is a matter of developing a uniform market infrastructure, and therefore we welcome collaboration with all actors working in the market,” Fors added.
The two collaborating firms have already created a prototype for a new fund platform.
Nasdaq head of product management, market technology Magnus Haglind said: “By leveraging blockchain technology there is strong potential for improvement via digitalization that can reduce manual work, create a faster process and reduce the risk for errors. This development will look to benefit the fund market and, in the end, also the individual investors through faster response from purchases and sales.”