Vienna-Prague Stock Exchange Group Launches World’s First DLT-Based Securities Settlement Platform

Vienna-Prague Stock Exchange Group Launches World’s First DLT-Based Securities Settlement Platform

(IN BRIEF) The Central Securities Depository in Prague, part of the Vienna-Prague Stock Exchange Group, has become the first institution globally authorized under the EU’s DLT pilot regime to operate a distributed ledger technology (DLT) market infrastructure. Starting in November 2024, issuers can register securities in the new DLT-based system, offering greater efficiency, transparency, and reduced administrative burdens in securities settlement. The new platform will allow seamless account management and transactions, supported by 24/7 digital access and enhanced security.

(PRESS RELEASE) VIENNA, 16-Oct-2024 — /EuropaWire/ — The Central Securities Depository in Prague (CSD Prague), a subsidiary of the Prague Stock Exchange and part of the Vienna-Prague Stock Exchange Group, has become the first institution globally to receive authorization under the EU’s DLT pilot regime to operate a distributed ledger technology (DLT) market infrastructure. This landmark approval, granted by the Czech National Bank and confirmed by the European Securities and Markets Authority (ESMA), enables CSD Prague to offer a DLT-based register for securities from November 18, 2024.

Christoph Boschan, CEO of the Vienna Stock Exchange, expressed pride in this technological milestone: “DLT, often linked with blockchain and cryptocurrencies, offers a significant opportunity to enhance efficiency and transparency in securities settlement. As an infrastructure provider, we are excited to be at the forefront of innovation in the capital markets.”

DLT allows for seamless securities management, including the transfer of shares or bonds for initial subscriptions, capital increases, or transfers between accounts based on agreements with counterparties. By eliminating intermediaries and reducing administrative complexities, DLT settlement simplifies the booking process while maintaining the security and transparency of traditional central registers. Private investors will benefit from a streamlined process using the “BankID” electronic identification solution, offering 24/7 account access via web or mobile applications.

Petr Koblic, CEO of the Prague Stock Exchange and Member of the Board of the Vienna Stock Exchange, highlighted the rapid development of the system: “With CSD Prague’s integrated post-trading processes and our IT team’s 20 years of securities business expertise, we were able to swiftly develop the DLT system to meet market needs.”

Financial service providers can also join the DLT system as nodes, enabling them to open DLT accounts for clients and record transfers within their customer applications. The technology offers significant benefits to FinTech companies, crowdfunding platforms, and companies with employee participation programs, providing additional services and alternative financing options without intermediaries.

About DLT & the EU DLT Pilot Regime

DLT is a decentralized information system that records transactions across multiple nodes, synchronizing through a consensus mechanism without intermediaries. The EU’s DLT pilot regime, launched in March 2023, acts as a regulatory sandbox to facilitate new market infrastructures like DLT-based settlement systems.

About the Vienna Stock Exchange

As a key infrastructure provider, Wiener Börse AG operates stock exchanges in Vienna and Prague, offering maximum liquidity and fast, cost-efficient trading. It also provides price data and indices for regional markets and supports exchanges in Budapest, Ljubljana, and Zagreb with IT services. Its expertise extends to regional energy exchanges and clearing houses.

Disclaimer

This press release may contain certain forward-looking statements and projections based on assumptions current at the date of this press release. We assume no liability whatsoever that these forward-looking statements will occur. Furthermore, we expressly point out that this press release does not serve as a basis for an investment decision and constitutes neither an invitation to buy nor an investment recommendation by Wiener Börse AG. The information in this press release is provided without guarantee.

Media Contacts:

Alexander Wastl
Corporate Communications & Marketing
alexander.wastl​(a)​wienerboerse.at
+43 1 531 65-153

Julia Resch
Head of Corporate Communications & Marketing, Spokesperson
julia.resch​(a)​​wienerboerse.at
+43 1 531 65-186

SOURCE: Wiener Börse AG