TMX Group Limited, operator of the Toronto Stock Exchange and the four marketplaces TSX Venture Exchange, Alpha, Montreal Exchange (MX), and Natural Gas Exchange (NGX), has developed a blockchain-based prototype that will be utilized by its energy exchange subsidiary NGX.
The new prototype service was made in tandem with digital infrastructure provider Nuco Inc., and is being constructed using Distributed Ledger Technology (DLT). The decision to rely on blockchain represents a growing trend at several global exchanges, many of which are relying on new technology to both power and improve the functionality and capabilities of their operations.
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In particular, the decision to support blockchain technology at TMX’s NGX will aim to help improve the tracking of natural gas flows at delivery locations in the US. The prototype is designed to also foster and streamline the overall settlement process for clients, thereby providing a transparent view of gas movements across locations, accurately report their positions.
According to Steve Lappin, President and CEO, NGX, in a statement on the technology: “NGX is committed to seeking out new ways to improve the client experience throughout the transaction delivery and settlement process, from production to end user, to drive growth in our business. This exciting new prototype is designed to more accurately and efficiently track activity and provide clients with valuable analytics on natural gas movements, while preserving the confidentiality and integrity of the data.”
“TMX’s digital strategy forges on in pursuit of tangible business applications for emerging technologies across our diverse enterprise. We gained valuable experience working with Nuco to leverage their DLT capabilities in deploying a customized solution for NGX’s business. The ability to efficiently develop and produce innovative prototypes will prove to be a differentiator for TMX as we strive to deliver new, transformative solutions for our clients,” noted John Lee, Vice-President, Innovation and Enterprise Delivery, TMX Group.
Earlier this month, TMX reported its Q1 financials, which saw a growth across key segments. The group’s Q1 2017 revenues managed to climb 5.0 percent year-over-year to $186.1 million from $177.7 million in Q1 2016. Moreover, net income attributable to shareholders were also on the rise, albeit only slightly, to $47.3 million in Q1 2017 from $46.3 million in Q1 2016, or +2.0 percent year-over-year.