Modern technology enables stock markets to be faster and more complex than ever.
But while the speed of order executions are infinitely more impressive across the board, the conceptual backbone behind the stock market itself hasn’t changed much. In fact, the model we use today for settling trades and ensuring proper share ownership is still based on the one initially created in the 17th Century.
At the beginning of the year, the UK Government’s Office for Science released a paper entitled ‘Distributed Ledger Technology: beyond blockchain.’
For many who heard the government’s chief scientist, Sir Mark Walport, discussing the report on BBC’s Radio Four, it might have felt liked they’d banged their heads and woken up a few years later to when a technology called blockchain was being adopted so widely that even the government were paying attention to it. But in reality this is still a relatively new technology that most people haven’t even heard of, yet right now the government, regulators and institutions want a look in.