Digital technology is also changing the Czech capital market. When the Central Depository of Securities (CDCP) was the first in Europe to obtain a license for so-called distributed records last year, it might have sounded like a matter for a narrow circle of technologists. In reality, however, it is one of the most ambitious projects on the Czech capital market.
The system makes it possible to issue adn transfer shares or bonds in a fully digital form, without dependence on banking systems or working days, and simultaneously occurring opens the way to the digitization of paper-based securities.
In an interview with SZ Byznys,the head of CDCP Ondřej Dusílek explains how the system works,why it can simplify the issuance of corporate securities and how it could transform the entire Czech capital market.
The new system is based on so-called distributed ledger technology, known as DLT (Distributed Ledger Technology). In contrast to the classic central records maintained by the depository, the DLT system is distributed among several participants – the so-called nodes. Each of them has a connection to its own server or cloud and participates in the verification of records in real time.
Read the first part of the interview with Ondřej Dusílek:
“It’s not a public blockchain like Bitcoin,” explains Dusílek from the depository. “It’s still a central registry by law, but technically it’s distributed. This means that entries are confirmed between multiple nodes and there’s no need to complexly compare data with the central office.”
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Photo: rené Volfík, Seznam Zpravy
Ondřej Dusílek
The Central Depository of Securities (CDCP) is preparing to launch a platform for issuing shares on a blockchain by the end of this year.This will allow smaller joint-stock companies to issue and manage their shares more efficiently, without the need for traditional intermediaries.
“We are building a system based on distributed ledger technology (DLT), which will allow companies to issue shares directly to investors,” says Ondřej Dusílek, CEO of the CDCP, in an interview for Seznam Zpravy. “This will reduce costs and simplify the process, especially for smaller companies that may not have the resources to navigate the traditional system.”
- He started his career in 2005 as an analyst at Univyc, a subsidiary of the Prague Stock Exchange.
- In 2012, he completed an internship with the City of London Corporation, which included two months of work experiance at the London Stock Exchange.
- In 2013 and 2014, he participated as a consultant in a World Bank project focused on the modernization of the capital market in Azerbaijan.
- In 2017, he was elected to the board of the Central Depository, and two years later he was appointed its CEO and was also elected to the board of the Prague Stock Exchange.
- In 2024, he was elected to the board of the European Association of Central Depositories (ECSDA).
- He graduated from the Faculty of Economics of VŠB-TU Ostrava, majoring in finance (2003) and majoring in European governance (2005).
- In 2016, he completed the Diploma for graduates in Banking at the University of London.