Yesterday Daiwa Securities Group announced the completion of a distributed ledger technology (DLT) proof of concept (PoC) conducted with 26 companies for Capital Markets Infrastructure. The Japan Exchange Group which runs the Tokyo Stock Exchange also participated as well the Japan Securities Depository Center. The tests were successful and focused on trade matching and post-trade processing and the next step is to form a consortium.
Trade matching happens after order execution when the buyer and seller reconcile ensuring there are no discrepancies.
By using standardized data and workflow processes on top of distributed ledger technology, the group concluded that there are significant operational cost savings for the entire industry. Those savings should ultimately benefit investors. Additionally, with DLT it should make it easier to introduce new products.
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