Testing has begun on a blockchain technology-based trading platform. Nasdaq and the Nordic corporate bank SEB, working together, aim to make trading of mutual funds faster, smoother and easier for all parties.
This platform is designed to make trades directly onto the blockchain ledger, for all fund managers, distributors and other mutual fund participants. This will increase tracking, auditability and efficiency.
Primitive Mutual Funds System
At present, tracking and maintaining a ledger of transactions in the Swedish mutual fund market is an extremely complex process, involving a host of players due to the lack of an organized tracking mechanism. As a result some transactions are still registered by hand.
An advanced solution for this issue is blockchain technology, which adds smoothness and speed to the primitive system by changing the way transactions would proceed.
Göran Fors, Head of Investor Services at SEB, in a statement said:
“With the help of a Blockchain, we can create a faster, simpler, more effective and reliable fund market”
As stated by Head of product management and market technology at Nasdaq, this kind of market controls will enlarge the flexibility of the funds market in Sweden and will provide a “perfect use case for Blockchain”. Adoption spreads as application advances.
Mahesh Sashital is cofounder of Smartereum.
He was previously Vice President at J.P. Morgan. He has over 15 years of experience in software engineering at various Fortune 20 companies. He has a Bachelor's in Engineering from the University of Mumbai and an MBA from the University of Texas-Austin.
