The use of distributed ledger technology (DLT) in stock trading in a stock exchange environment: analysis under the light of the Brazilian legislation

Alexandre Ferreira de Assumpção Alves / Leonardo Renne Silva Teixeira

Keywords

Distributed Ledger Technology; Stock Exchange; Blockchain; Stock trading; Stock post-trading.

Abstract

The study aims to analyze the legal aspects related to the use of the distributed ledger technology (DLT) in the trading of shares on the stock exchange in Brazil, since this technology has the potential to increase the efficiency and economy of this trading environment. This study will start from the major premise that the use of DLT improves the trading and post-trading of shares in this environment and from the minor premise that it is possible to implement this technology on the stock exchange, despite the inexistence of laws or normative acts in Brazil that expressly provides about that possibility. To bring greater context to the reader, the trading and post-trading phase of shares in a stock exchange environment will be explained, the details about the DLT itself, including its operating dynamics. Based on these findings, the operational possibility and legal feasibility of implementing DLT in a stock exchange environment will be analyzed and, afterwards, whether this technology will promote changes included in the dynamics of trading and post-trading of shares.