# Why a stepchange is needed in the global equity market
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-02-24
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Revolutionising Global Equity Markets
Meta Description: Discover how blockchain is disrupting the status quo in the equity market, providing transparency, security and direct connections for businesses and investors.
URL: https://financedigest.com/why-a-stepchange-is-needed-in-the-global-equity-markethtml

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By Sascha Ragtschaa, CEO and Co-Founder of Chainium

**Pulling the Trigger**

![Sascha Ragtschaa, CEO and Co-Founder of Chainium](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/sascha-1736842969428-compressed.png)

Sascha Ragtschaa, CEO and Co-Founder of Chainium

Sourcing information on a [global business](https://www.financedigest.com/bhp-in-talks-to-sell-global-oil-gas-business-to-australias-woodside.html "BHP in talks to sell global oil, gas business to Australia’s Woodside") takes seconds. In fact, the ubiquitous [Google now processes over 40,000 search](https://www.financedigest.com/your-phone-number-on-google-search-giant-now-takes-removal-demands.html "Your phone number on Google? Search giant now takes removal demands") queries every second. This equates to over 3.5 billion searches a day and an almost inconceivable 1.2 trillion searches per year worldwide [\[1\]](#_ftn1). However, pulling the trigger to [invest in a global business](https://www.financedigest.com/esg-investment-making-your-business-a-more-sustainable-place.html "ESG investment: Making your business a more sustainable place") is a whole different ball game.

Whilst the FTSE in London hit a record high of 7,778.64 on the 12th January [\[2\]](#_ftn2), this is masking a wider problem. Expensive, intricate and restricting, buying and [selling shares](https://www.financedigest.com/itv-shares-jump-on-reports-it-could-sell-stake-in-production-arm.html "ITV shares jump on reports it could sell stake in production arm") between businesses and investors has significantly fallen behind advancing developments within the wider financial sector. Especially when you compare it to the latest cryptocurrencies, with the famed [Bitcoin hitting](https://www.financedigest.com/bitcoin-could-hit-100000-by-end-2024-standard-chartered-says.html "Bitcoin could hit 0,000 by end-2024, Standard Chartered says") a high of close to $20,000 in December last year, prior to its recent readjustment.

**Disruption of the Status Quo**

As one of the most vital areas of the market economy, it is essential the equity market drags itself into the [21st century](https://www.financedigest.com/taking-the-pain-out-of-payments-for-the-21st-century-worker.html "TAKING THE PAIN OUT OF PAYMENTS FOR THE 21ST CENTURY WORKER"). The simple truth is that when the global equity market was created two hundred years ago with the founding of the [London and New York Stock Exchanges](https://www.financedigest.com/london-stock-exchange-pours-cold-water-on-merging-listing-segments.html "London Stock Exchange pours cold water on merging listing segments"), the world was a very different place. Whilst country-specific stock exchanges made sense at the time, today the world has got a lot smaller and the equity [market needs](https://www.financedigest.com/why-you-need-to-embrace-nostalgia-marketing-right-now.html "Why You Need to Embrace Nostalgia Marketing Right Now") to take advantage of a global investment pool.

To become relevant for the modern investor, a certain amount of disruption of the status quo is required. The sector needs to ensure that trading becomes a more [seamless experience and promote continued digital transformation](https://www.financedigest.com/insuring-a-seamless-digital-transformation.html "Insuring a seamless digital transformation") within the industry, rather than resisting against it.

[**Changing markets**](https://www.financedigest.com/digital-marketing-for-finance-and-insurance-firms-is-changing-are-you-ready.html "Digital marketing for finance and insurance firms is changing — Are you ready?")

The solution could well be the blockchain. The technology that underpins the main cryptocurrencies such as Bitcoin and Ethereum has the advantage of being transparent enough to ensure democracy and visibility, whilst being private enough to [protect businesses](https://www.financedigest.com/fx-hedging-strategies-to-protect-your-business.html "FX hedging strategies to protect your business") and investors alike. The technology is an enabling force to being able to remove the middle layers, administration and reconciliation steps required in today’s [global equity](https://www.financedigest.com/global-equities-waver-on-inflation-view-as-falling-oil-supplies-lift-prices.html "Global equities waver on inflation view as falling oil supplies lift prices") market solutions. This [means that businesses and investors](https://www.financedigest.com/a-digital-first-world-means-investors-should-look-to-digital-due-diligence-first-too.html "A digital-first world means Investors should look to digital due diligence first too") can be connected directly, without the need for middlemen.

To become truly transformative in 2018, any new equity [market solution](https://www.financedigest.com/the-patient-engagement-solutions-market-to-grow-on-a-satisfactory-note.html "The Patient Engagement Solutions Market to grow on a satisfactory note") needs to be built with security at its core. The recent string of high profile data breaches – coupled with the impending Global Data [Protection Regulation](https://www.financedigest.com/regulators-need-to-strike-the-balance-between-protection-and-strangulation.html "REGULATORS NEED TO STRIKE THE BALANCE BETWEEN PROTECTION AND STRANGULATION") (GDPR) which comes into force on 25th May – have heightened the awareness among consumers regarding information security; especially when payments of any kind are involved. Blockchain can not only protect the individual, but also allow for enough transparency to ensure equity decisions, [voting and resolutions](https://www.financedigest.com/pirc-recommends-vote-for-bp-climate-activist-resolution.html "PIRC recommends vote for BP climate activist resolution") are fully transparent.

**Removing the shackles**

A modern equity network needs to be built with the interests of both investors and [business owners](https://www.financedigest.com/carbon-zero-what-it-means-for-business-owners.html "Carbon Zero: What it Means for Business Owners") at its core. By democratising equity, it can bring influence and power back to the individual investor through de-centralisation, [blockchain technology](https://www.financedigest.com/how-blockchain-technology-can-help-the-fashion-industry-make-verifiable-green-claims.html "How Blockchain Technology Can Help the Fashion Industry Make Verifiable Green Claims") and crypto payments. Meaning the network [becomes completely removed from the shackles of traditional stock](https://www.financedigest.com/cineworld-eyes-wall-st-money-after-rival-amc-becomes-meme-stock.html "Cineworld eyes Wall St money after rival AMC becomes meme stock") exchanges, government regulation and the institutional and corporate stranglehold.

By using blockchain to revolutionise the way we all buy and sell shares, a global equity market worth US$76 trillion [\[3\]](#_ftn3) can truly be unlocked. Not only that, but the 400 million private companies that there are worldwide – representing 99% of [total global](https://www.financedigest.com/global-grass-fed-beef-market-value-is-forecast-to-total-us-17-9-bn-by-2031.html "Global Grass Fed Beef Market value is forecast to total US$ 17.9 Bn by 2031") businesses – can begin to seek potentially transformative investment for the first time.

[**Back to basics**](https://www.financedigest.com/back-to-operational-basics-with-analytics.html "Back To Operational Basics With Analytics")

This back-to-basics approach to raising capital reduces bureaucracy; with blockchain technology removing duplication and eliminating errors. This allow investors and businesses to exchange digital share certificates for fiat or crypto-currency in a transparent, tamper proof and immutable [distributed ledger](https://www.financedigest.com/how-distributed-ledger-technologies-are-transforming-esg-reporting-for-financial-intermediaries.html "How Distributed Ledger Technologies are transforming ESG reporting for Financial Intermediaries"). No intermediary or other reconciliation steps are involved in transactions, cutting through hundreds of legacy systems and solutions from the old world.

Business owners, of private and public businesses, can now sell [shares directly to investors](https://www.financedigest.com/entrepreneur-investor-dale-w-wood-shares-how-he-is-using-his-funds-to-create-change.html "Entrepreneur & Investor Dale W Wood Shares How He Is Using His Funds to Create Change"). Cutting out the middlemen in issuing and trading shares helps to give complete [control back](https://www.financedigest.com/back-to-basics-for-cost-control-as-the-usual-levers-lose-value.html "Back to basics for cost control as the usual levers lose value") to the businesses and investors alike and help them become indelibly linked.

**A transformation is needed**

A [transformation of the global equity market](https://www.financedigest.com/signal-transformer-market-one-the-most-booming-industry-in-upcoming-years-due-to-global-demand-in-industry-by-2027.html "Signal Transformer Market| One the Most Booming Industry in Upcoming Years Due to Global Demand in Industry by 2027") is needed to promote innovation and reinvent the processes involved in trading shares. No more stock exchanges. No more [trading through banks](https://www.financedigest.com/bank-of-england-removes-paintings-of-governors-linked-to-slave-trade.html "Bank of England removes paintings of governors linked to slave trade"), brokers and intermediaries. No more expensive fees and slow clearing processes. No more share registrars, transfer agents or middlemen.

We have seen AirBNB, Ethereum and Uber all become the pinnacle of digital transformation in their industries, we are now [seeing the same beginning to happen in the global equity](https://www.financedigest.com/global-equity-funds-see-large-outflows-on-slowdown-worries.html "Global equity funds see large outflows on slowdown worries") market too. A step change was needed to ensure investment in the best ideas continues for [decades to come](https://www.financedigest.com/global-hid-ballast-market-expected-to-decline-with-a-cagr-of-9-8-in-the-coming-decade.html "Global HID Ballast Market Expected to Decline with a CAGR of -9.8% in the Coming Decade"). By removing the multiple barriers to [investment means](https://www.financedigest.com/esg-investing-does-that-mean-sacrificing-performance-is-the-uk-the-right-place-and-how-to-do-it-properly.html "ESG Investing – Does that mean sacrificing performance? Is the UK the right place? And how to do it properly") that the next Apple, Google or Microsoft won’t be left on the scrapheap, but receive the investments they need to thrive.

[\[1\]](#_ftnref1) http://www.internetlivestats.com/google-search-statistics/

[\[2\]](#_ftnref2) http://www.bbc.co.uk/news/business/markets/europe/lse\_ukx

[\[3\]](#_ftnref3) https://www.thestreet.com/story/14229200/1/global-stocks-are-now-worth-more-than-the-global-economy-and-that-s-worrying.html


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