A London-based consortium comprising hedge fund investors, former exchange executives and fintech entrepreneurs have funded the development of a new platform that they say will democratise trading and create a more level playing field.
The new platform which is based around a secure distributed ledger for banks, financial institutions and global enterprises aims to establish a fairer and more transparent way of trading.
The new platform, currently in a pilot program with a Top-10 bank based within the square mile, is seen as an antidote to the High Frequency Trading (HFT) arms race.
It remains to be seen whether Long Wavelength Trading (LWT) inherent in the pilot platform will find favour with regulators who have since the “Flash Crash” been examining the contentious issues in securities markets, the role of high-frequency trading and its implications for market integrity.
Professor Michael Mainelli, Executive Chairman of Z/Yen Group commenting on the pilot said “Long Wavelength Trading on Blockchain is fantastically slow. Speeds have come down from milliseconds to days, resulting in virtually zero volatility.”