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Shanghai Stock Exchange, Regulator to Begin Blockchain Trading Pilot

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The Shanghai Stock Exchange, one of the biggest exchanges in the country, will conduct a pilot for a new blockchain-powered trading platform in conjunction with the regulatory China Securities Regulatory Commission (CSRC).

Shanghai. Source: Adobe/安琦 王

According to Shanghai Securities News, the Shanghai Stock Exchange said it has “made significant progress” in with the construction of a blockchain-powered trading network, stating it has achieved a range of on-chain functionality under the “successful supervision” of the regulatory body.

The CSRC is one of the biggest and most powerful financial regulators in China, and in summer this year unveiled a set of plans to allow stock market operators and other businesses to adopt blockchain technology – and encourage the launch of a number of pilot projects, all making use of distributed ledger technology.

The Shanghai project has been co-constructed by the Suzhou Tongji Blockchain Research Institute, a cooperative venture run by Tongji University and the Suzhou government – and headed by Ma Xiao Feng, one of China’s leading blockchain experts.

The project makes use of a blockchain network created and operated by the institute, and the Shanghai Stock Exchange said it is now ready to begin pilot trading.

The company added that it has successfully integrated data on market-listed companies, intermediaries, and investors, covering a comprehensive range of business data pertaining to listing, display, custody, transactions, capital, and information disclosure.

The regulator, meanwhile, hopes the project will “further standardize market behavior” and boost transparency in stock market trading. The CSRC hopes that the pilot will provide a blueprint for further stock market innovation – and could look to implement the roadmap again should the rival Shenzhen Stock Exchange also seek to launch blockchain-powered operations.
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