An Exploratory Study of the Impact of Blockchain Technology on developing the Financial Market Infrastructure

Abstract

Blockchain technology is considered one of the most important innovations in the financial technology revolution. Academics and market participants have experimented with this technology with the aim of enhancing the performance of financial markets, as consortia were formed by the largest financial institutions in the world aiming to benefit from the use of blockchain technology in various financial operations of issuance and settlement. This is why we seek in this forward-looking study to analyze the expected economic effects of using blockchain on the infrastructure of the current financial market by analyzing its application in every step of the market operations before, during and after trading financial assets, then presenting an ideal scenario simulating the adoption of this technology in various Market operations, and our most important findings indicate that the distributed and immutable nature of blockchain technology provides a robust and secure infrastructure by increasing data integrity, and this will connect institutions across financial markets by simplifying settlement and verification processes and the potential for expanding global financial services