Bitcoin tech could boost trade efficiency

Author: Zoe Thomas | Published: 6 Aug 2015

US exchanges’ adoption of bitcoin technology to facilitate and track trades could enhance speed and transparency in the securities market.

The use of the blockchain software, which is essentially a ledger of trades, would enable buyers, sellers and exchanges to clearly mark the ownership path of a security.

Regulators have not offered any guidance, but the use of this technology could enable financial institutions and their monitors to see irregularities and allow them to close the gap on market arbitrage.

"From a regulatory perspective I think the blockchain should be viewed as a positive," said Cleary Gottlieb Steen & Hamilton partner Michael Krimminger. "If you have transparency at the origination of the transaction, blockchain offers an easy trail."

The Nasdaq – the largest exchange for technology companies in the US – launched a pilot programme in July to test the use of the...