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securities Markets Watchdog Completed Testing of Blockchain for Registering Stock Warrant Issuances

“Through the pilot blockchain platform, the time for registering stock warrant issuances was reduced by 70%.”

According to reports,  the Spanish securities market regulatory institution and some financial institutions including Banco Santander have completed a blockchain pilot, which aims to use blockchain technology to register stock warrant issuances. A stock warrant is a call option issued by a company limited by shares to subscribe for its shares. It grants the holder the right to purchase a certain number of shares of the issuing company at a pre-agreed price within a certain period of time.

It is reported that participants in this year-long fast track (FTL) pilot project include the Spanish National Securities Market Committee (CNMV), and Santander, Spain, Foreign Bank of Spain, BNP Paribas, CaixaBank, Commerzbank and Société Générale and other institutions.

It is reported that the idea of ​​the pilot is to use the shared data to more effectively register release information about the warrants and filter the data to the participating parties. Santander said that through the pilot blockchain platform, the time for registering stock warrant issuances was reduced by 70%.

The preliminary results of the pilot are very optimistic, which lays the foundation for the further application of Proof of Blockchain Technology (PoC). CNMV:

“After obtaining such good results, CNMV has decided to continue exploring the possible uses of this technology in its processes and carry on with the project. BME and all the national warrant issuers (BBVA, Caixabank and Banco Santander), as well as international warrant issuers (BNP Paribas, Commerzbank and Société Générale), are also actively contributing to this project.”

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