Digital capital market infrastructure lays a foundation for a new evolution in finance - one that combines proven parts of traditional structures and the potential of new technology like blockchain and DLT. This transition has has many layers - as well as challenges and opportunities.
But what efficiencies does digital capital market infrastructure actually bring? What links remain between the “old and new” worlds - with exchanges, central securities depositories (CSD) and other elements of the ecosystem? And how do changing regulations and technological innovations promise to alter the landscape overtime?
In Part 1 of this RULEMATCH Spot On episode, Ian Simpson speaks to David Newns, Head of theSIX Digital Exchange (SDX) for an in-depth discussion of SDX’s development and operations, perspectives on the current state of digital assets and SDX’s place in the wider world of digital capital markets.
(1:31) - What is SDX exactly?
(2:50) - Equal regulation as the foundation of SDX
(6:30) - How Switzerland (and SDX) have benefited from crypto
(11:05) - The advantages of regulation
(12:35) - The why and how of dual asset listings
(17:44) - Why bonds and how successful they are on SDX
(20:05) - Digital bonds in financial products
(22:50) - (Digital) securities equivalence and why it’s useful
(25:38) - Digital central bank money - the missing component
(25:59) - Why capital markets need riskless digital money
(30:37) - The key considerations for building a blockchain-based capital market infrastructure
(36:17) - Moving forward towards “digital supremacy”
(36:50) - Intermediated (dematerialized) securities in the digital assets space - and why Switzerland is good at them
(39:45) - Central securities depositories (CSD) on the blockchain and collateral mobilization
(42:54) - “Borrowing” DeFi use cases for regulated financial services
(43:52) - Privacy, settlement finality and other considerations for use of a private blockchain
(50:44) - The use cases for instantaneous (precision) settlement and its potential downsides
(55:07) - Details on the trading and settlement processes of SDX
(58:29) - (No) needs for a Central Counterparty Clearing House (CCP)
Disclaimer:
The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.
