The exchange network will use blockchain technology throughout the entire lifecycle of a transaction, eliminating the need for a prime broker.
Peer-to-peer trading network provider OTC Exchange Network has joined the Wall Street Blockchain Alliance (WSBA) the organization announced. The OTCXN is now a corporate member of alliance, a non-profit trade organization for the financial sector that promotes the adoption of blockchain among financial markets.
OTCXN uses blockchain and smart contracts across its peer-to-peer trading network. Initially it will only be available for the global foreign exchange market. Blockchain enables them to provide transparency and operational controls for safe and secure direct trading. It eliminates the need for a credit arrangement with a prime broker, which has traditionally been a lengthy process before a trader can participate in the FX marketplace.
“We are delighted to have OTC Exchange Network join the Alliance. OTCXN’s innovative use of blockchain technology throughout the entire lifecycle of a transaction helps facilitate discussions outside of post trade settlement and clearing, and showcases its utility for a number of markets currently evaluating the technology. We are looking forward to OTCXN’s contributions to a number of WSBA member activities and involvement in our focused working groups,” said Ron Quaranta, chairman and founder of WSBA.
Prime brokers participating in the OTCXN receive real-time pre-trade credit controls, permissioned API access to audit ledgers, client kill switches, auditable messaging and more. Their blockchain fabric is available as a stand-alone offering for financial organizations.