ICAP Trials Blockchain Securities Settlement System in Forex Markets

ICAP, a leading provider of post trade services in commodities, interest rates and Forex markets, announced yesterday that its Post Trade Risk and Information (PTRI) division has successfully trialed a financial securities settlement system built on a distributed ledger network.

PTRI worked with New York-based blockchain developer Axoni, which implemented a distributed ledger-based smart contract system that was fed trade data from Harmony, a messaging and order matching trading platform, to settle the trades.

The trial, which was completed on the 26th of February, consisted of Forex block trades that were executed on Axoni’s smart contract platform.

The press release said:

“Tested using bilaterally executed spot/forward foreign exchange block trades, the PTRI division imported matched messages from Harmony and converted them in real time to blockchain-based smart contracts.”

The experiment showed that a blockchain trading network can provide a “common golden source” of information regarding the flows of various assets in the financial system, especially foreign exchange volumes. This kind of information is difficult to source in the current globally-distributed Forex market.

CEO of PTRI Jenny Knott, explained that Axion’s blockchain implementation shows how powerful and transformative this new technology can be to the financial markets, “In successfully completing a proof of technology test, ICAP has demonstrated one of the first real world applications of distributed ledger technology that has the ability to significantly transform the post trade landscape. said Knott.

Greg Schvey, CEO of Axoni, said that there is “no shortage” in the demand for blockchain solutions from the financial sector.

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