Colombian Stock Exchange to use blockchain for OTC derivatives trading

Published at: Nov. 25, 2020

The Colombian Stock Exchange announced it is joining the Consorcio Colibrí, a private initiative that promotes the adoption of blockchain technology within the finance industry.

As Cointelegraph Español reported on Nov. 18, Consorcio Colibrí was formed by major financial institutions such as Bancolombia, BBVA, Santander Caceis Colombia, Deceval, Contrato Marco, Porvenir and Skandia, among others.

Via a partnership with member firm Contrato Marco, the CSE will use the Colibrí platform's blockchain tech to improve operational efficiency in the over-the-counter derivatives market, which is currently time-consuming, expensive and difficult to reconcile with established manual procedures, according to the CSE.

CSE president Juan Pablo Córdoba said that blockchain will streamline the clearing and settlement of operational guarantees.

According to La República, the agreement includes a strategy for implementing initiatives from the Fintech Connection Program of CSE and Sophos Solutions to accelerate digital transformation in different lines of business.

“The agreement reached with CSE will allow us to show the market that the future of financial infrastructures lies in blockchain technology,” said Juan Manuel López, executive director of the Contrato Marco.

The Colombian fintech announced in October 2019 that it completed a successful pilot, which used distributed ledger technology to reduce operational risk among participants in the derivatives market.

Tags
Technology
Cryptocurrency Exchange
Derivatives
Stocks
Finance
Financial Derivatives
Related Posts
Investors are back into Bitcoin but DEXs are still the future of crypto
Bitcoin’s long-waited bull run and the recent wave of corporate and institutional investors allocating significant portions of their reserves to Bitcoin (BTC) are all signs that the pace of crypto’s mainstreaming is rapidly accelerating: But has the path to mass adoption come at the cost of privacy and decentralization? Know Your Customer and Anti-Money Laundering laws have forced the majority of cryptocurrency exchanges to become more transparent about who their users are, and those who refused have had to limit the jurisdictions in which they can offer services. In order to operate legally in many countries, many exchanges have had …
Technology / Nov. 9, 2020
Decentralized exchanges aren’t ready for derivatives
If the words “derivatives trading” conjures up images of men in suits with disheveled white sleeves rolled up to the elbows and exacerbated expressions on their faces — like something out of The Big Short — then the word decentralized exchanges (DEXs) must conjure up, well, nothing. There are no offices, no floor traders waving papers and certainly no men in suits. DEXs are managed automatically or semi-automatically with the involvement of platform participants in the process of making mission-critical decisions. DEXs are a bulb of a system that is sprouting groundbreaking opportunities for many, but they are not yet …
Technology / Nov. 20, 2021
OKEx shared insights on trading, regulation, DeFi and more during recent Markets Pro AMA
Founded in 2017, OKEx is a centralized cryptocurrency exchange based in Seychelles. According to CoinGecko, OKEx is the world's third-largest cryptocurrency brokerage, with nearly $12 billion in trading volume within the past 24 hours. The exchange lists 312 coins and 518 cryptocurrency trading pairs. It's often difficult for new cryptocurrency enthusiasts to navigate the complex world of trading and finance. OKEx seeks to bring such sophisticated trading methods to everyday users' disposal by building simple user interface. During an exclusive ask me anything, or AMA, session with Cointelegraph Markets Pro Users, OKEx staff discussed trading tools, financial regulation, the OKExChain …
Adoption / Nov. 26, 2021
One exchange is trying to make debt tokenization a thing in crypto
An increasing number of mainstream financial activities have become blockchain integrated in line with the growing crypto segment. Now tokenized debt markets are entering the space as well. “CoinFLEX has created a new market for short-term commercial paper, enabling private companies to borrow USD and BTC unsecured for crypto trading purposes,” the company said in a public statement on Thursday. In traditional finance, corporate bonds act as a way for participants to give businesses funds in exchange for interest, as described on Investopedia. Investors receive their initial capital back at the expiration of the bond. The new offering from CoinFLEX …
Technology / Dec. 17, 2020
Riot’s Stock Dips 5% as It Focuses on Bitcoin Mining Ahead of Halving
Riot Blockchain, a Nasdaq-listed crypto firm in the United States, plans to sell its exchange to focus on Bitcoin (BTC) mining ahead of the halving. According to an official announcement on Feb. 20, Riot has “opted to sunset further development of Riot's U.S.-based digital currency exchange” in order to focus on cryptocurrency mining as part of its updated strategic priorities for 2020. Following the announcement to shift its focus on Bitcoin mining, the company’s shares dropped more than 5%, trading at $1.40 at press time, according to CNBC data. Industry experts disagree on the potential price impact of May 2020 …
Technology / Feb. 21, 2020