Deutsche Börse plans digitisation for German capital markets
German exchanges operator Deutsche Börse is implementing a new digitised central registry and post-trade platform it claims could cover up to 80% of Germany’s securities.
The new system will be based on blockchain technology
The system, dubbed D7, is based on blockchain technology and underpinned by software and services provider Digital Asset.
Deutsche Börse hopes the platform can provide same-day-issuance and paperless, automated straight-through processing.
It will initially cover structured products, including warrants, certificates and commercial papers. It will then roll out into other areas.
Digital Asset is one of a few partners in the development, alongside Microsoft and VMWare.
The project has backing from a group of banks, including BNP Paribas, DekaBank, Deutsche Bank, Citigroup and Raiffeisen Bank.
“Dematerialisation of securities and digitisation of issuance processes is at the forefront of change in capital markets,” says Jens Hachmeister, managing director for issuer services and new digital markets at Deutsche Börse.
“It’s with technology partners, like Digital Asset and others, that we can foresee having over 80% of German securities digitised via D7 by mid-2022.”
The new system is expected to be available in November 2021 followed by a full integration in mid-2022.
Yuval Rooz, CEO and co-founder of Digital Asset, says a digital future for capital markets will “enable interoperability between financial institutions” and bring “greater levels of efficiency, security and transparency”.
