Scottish Looking at their own Blockchain-driven Stock Exchange

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Up until 1973 Scotland had its own independent stock exchange, the Scottish Stock Exchange, born from a merger of the Edinburgh, Glasgow, Dundee and Aberdeen Stock Exchanges in 1964. But the doors were slammed shut when it was officially merged with the London Stock Exchange in 1973 and all operations were moved to London.

With the Scots getting more wary of staying in the United Kingdom due to the vote of the English in the south to leave the EU via a Brexit, a new group of Blockchain and financial experts in Scotland have begun work on SCOTEX a Blockchain driven trading platform built from scratch from the ground up as an entirely new exchange they say can bring about real innovation to the equity capital market. Scotex is seeking to raise as much as 15 million pounds ($18.4 million) to start a regulated equity market next year, according to a statement last week.

From the website.

We can bring profound change to the post-trade landscape through distributed ledgers thereby slashing settlement times and bringing significant cost benefits to all exchange participants. Every exchange in the world is looking at implementing this technology but they all face the intractable problem of switching from legacy systems on to very new and very different post-trade infrastructure. Without that problem to overcome SCOTEX can genuinely be the first in the world at implementing distributed ledger technology with the STARS system.

SCOTEX will offer capital markets access for the next generation of scientists, inventors and entrepreneurs of Scotland. It is crucial for Scotland that its wealth creators – now and in the future – have a visible equity capital market that is able to provide them with access to the capital they need to grow their companies.

They are calling the new post-trade system STARS: Secure Transaction Affirmation and Reporting System. It will mean:

  1. Trades will settle almost immediately with no need for post-trade clearing (guaranteeing) of trades.
  2. Trading will be much cheaper for everyone as users will be charged a low flat fee to access the ledger rather than being charged per transaction in a captive system.
  3. Sellers will get their money almost instantly and no later than 15 minutes after executing a stock sale.
  4. No need for post-trade affirmation or confirmation and central clearing during the settlement cycle.
  5. Reduced scope for data errors, disputes and reconciliation lags, speeding up the end-to-end trading process since all participants operate from their own local version of the golden source.

About Richard Kastelein

Founder, Publisher and Editor in Chief of Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC, Richard Kastelein is also an advisor with a number Blockchain startups doing ICOs including DECENT.ch, Inchain, Humaniq, Chronobank, eGaas and others.

He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List. As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven etc, where he helped spread the cause for Blockchain technology and crypto-currency and, consequently, has built a notable network inthe scene.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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