Blockchain could disrupt the way stock market operates

Traditional stock markets around the world are facing a period of disruption as a result of the increasing popularity of blockchain technology, digital currencies, and new capital raising models like initial coin offerings (ICOs). The implications of these advancements are significant, with some industry experts suggesting that without stringent regulation, the traditional stock exchanges may become obsolete. Oscar Onyema, the CEO of the Nigeria Stock Exchange, recently addressed these challenges and opportunities at the Thomson Reuters Africa Summit in Cape Town. Onyema outlined the exchange's efforts to stay relevant in a rapidly evolving market by embracing technology and prioritizing customer needs. The shift towards digital innovation is seen as essential for the exchange to adapt to changing investor preferences and market dynamics. In a conversation with CNBC Africa, Onyema discussed the importance of understanding and serving customers, while also acknowledging the potential impact of blockchain and cryptocurrencies on the stock market landscape. He highlighted the exchange's commitment to leveraging emerging technologies such as cloud computing, artificial intelligence, and big data analytics to enhance service delivery and facilitate efficient investment opportunities for clients. While recognizing the challenges posed by new technologies, Onyema expressed confidence in the exchange's ability to navigate these changes and evolve in response to market demands. The CEO emphasized the importance of maintaining trust and transparency in the investment process, noting that traditional stock exchanges play a critical role in ensuring that investors have confidence in the legitimacy of listed companies. Onyema also addressed concerns about the regulatory environment and the fees associated with trading on traditional exchanges. He underscored the exchange's commitment to addressing these issues and exploring innovative solutions to enhance market accessibility and efficiency. Despite the growing competition from alternative trading platforms, Onyema remains focused on the core functions of the Nigeria Stock Exchange, emphasizing the importance of price discovery and facilitating seamless transactions between buyers and sellers. Overall, his message echoed a sentiment of adaptability and resilience in the face of technological disruption, positioning the exchange for continued growth and relevance in the evolving financial landscape.