Article: New Studies on an Equities Distributed Ledger Address Volume Concerns

17 October 2018 | Bill Hodgson

In a traditional systems architecture a relational database stores the resulting trades from an exchange. Firms like Oracle and IBM have had plenty of time to figure out how to service high transaction volumes to avoid data loss. DTCC and other back-end processing firms such as CCPs are considering whether distributing activity on an exchange is better done using an equities ledger rather than current methods.

The perception of ledgers is that adding transactions is slow, needing a consensus process for entities on the ledger to agree to each new transaction. On coin based ledgers the update rate can be as low as one transaction per second to the dizzying heights of ten transactions per second, not sufficient to support a high volume exchange market. More background on the performance of many coin based ledgers can be found here.

Two new studies have attempted to pave the way for migrating an exchange onto a ledger, one by DTCC and the other by GFT. Working with Digital Asset and R3 the studies have created simulated market

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