Daiwa Securities Group, a major Japanese financial services company, has announced that it intends to implement blockchain technology for trading on the Yangon Stock Exchange in Myanmar.
Daiwa has been testing blockchain technology at the Yangon exchange for months, from June to September, and hopes to complete formal implementation for all Daiwa stock trades on the Yangon exchange within two years. The only thing that the outfit is waiting for is the official nod.
Blockchain technology is being touted for countries like Myanmar, where problems with developing infrastructure can lead to frequent power outages and loss of phone services. Traditionally, stock trade information is stored in servers at the exchange, but power loss stops everything because historical information is need to make trades.
Brokerages using blockchain can continue some of their operations, including accessing historical information, past transactions, and outstanding balances for their clients. The blockchain ledger will be available outside of the affected location and transaction records can be shared securely at several different locations simultaneously.
Yangon Stock Exchange only conducts trades twice per day, matching buy and sell orders at 11 am and 1 pm so the issues of having a missing ledger are not a problem. Other exchanges match orders constantly during the day, making continuous connection to servers more crucial. Because there is limited time to conduct actual trades at Yangon, Daiwa believes that the technology can be implemented with few technical issues.