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Blockchain and the Future of Securities Exchanges

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Artificial Intelligence and Blockchain for Future Cybersecurity Applications

Part of the book series: Studies in Big Data ((SBD,volume 90))

Abstract

In this paper, we analyze blockchain technology as an alternative to facilitate securities market transactions. We argue that the ability to lower transaction costs combined with the reduction of intermediaries and improvements in transaction efficiency will promote the implementation of blockchain technology in these markets. We use platform economics to illustrate how blockchain-based securities exchanges can reduce unfair rents that platform operators extract from the investing public under the current regulatory regime, and indicate how the economics of platforms might be used to implement a blockchain solution to enhance the exchange process. We argue that in order to reduce transaction costs and increase the potential for innovation, blockchain platforms should be moved from the supply-side to an intermediary position and operate as a neutral party that straddles both sides of the market. Finally, we find that open routing procedures are likely to positively impact the market and enhance the efficiency of securities market transactions.

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Author information

Authors and Affiliations

  1. Saint Leo University, St. Leo, Florida, USA

    Zachary A. Smith

  2. Tecnologico de Monterrey, EGADE Business School, Mexico City, Mexico

    Mazin A. M. Al Janabi

  3. National University of Sciences and Technology (NUST), Islamabad, Pakistan

    Muhammad Z. Mumtaz

  4. Carleton University, Ottawa, Ontario, Canada

    Yuriy Zabolotnyuk

Authors
  1. Zachary A. Smith
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  2. Mazin A. M. Al Janabi
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  3. Muhammad Z. Mumtaz
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  4. Yuriy Zabolotnyuk
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Corresponding author

Correspondence to Mazin A. M. Al Janabi .

Editor information

Editors and Affiliations

  1. Sultan Moulay Slimane University, Beni Mellal, Morocco

    Yassine Maleh

  2. Chouaib Doukkali University, El Jadida, Morocco

    Youssef Baddi

  3. Charles Darwin University, Canberra, Australia

    Mamoun Alazab

  4. Texas A&M University, San Antonio, USA

    Loai Tawalbeh

  5. Edinburgh Napier University, Edinburgh, UK

    Imed Romdhani

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This study did not receive any funding from any entity or organization.

Conflict of Interest:

The authors declare that they have no conflict of interest.

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Smith, Z.A., Al Janabi, M.A.M., Mumtaz, M.Z., Zabolotnyuk, Y. (2021). Blockchain and the Future of Securities Exchanges. In: Maleh, Y., Baddi, Y., Alazab, M., Tawalbeh, L., Romdhani, I. (eds) Artificial Intelligence and Blockchain for Future Cybersecurity Applications. Studies in Big Data, vol 90. Springer, Cham. https://doi.org/10.1007/978-3-030-74575-2_5

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