Comment on New technology could change the way the stock market operates

New technology could change the way the stock market operates

Carl Court/GettyImagesModern technology enables stock markets to be faster and more complex than ever. But while the speed of order executions are infinitely more impressive across the board, the conceptual backbone behind the stock market itself hasn’t changed much. In fact, the model we use today for settling trades and ensuring proper share ownership is still based on the one initially created in the 17th Century. A DECENTRALIZATION OF EQUITIES? Today’s infographic comes to us from Equibit, and it envisions what a decentralized securities platform could look like. In such a paradigm, the settlement of trades would not occur through centralized transfer agents, but instead through a blockchain with this feature “built in”. The application of blockchain technology could take the modernization of the stock market one step further.

 

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