Swift signed a Memorandum of agreement with the seven Central securities depositories to explore the possibilities offered by blockchain technology for post-trade processes such as voting by proxy.
Central securities Depository (CSD) — design Institute of infrastructure of the securities market, traditionally those in Western markets functions of dematerialization and immobilization of securities, as well as playing the role of a Central securities settlement.
Today, Swift signed an agreement with the us Nasdaq Market Technology, National settlement Depository, SIX Securities Services, the Swiss company South Africa, as well as the securities exchange of Abu Dhabi, the Argentine Caja de Valores in Chile Depósito Central de Valores.
The main players of the financial infrastructure will take part in the working group TSD DLT. Proxy voting is a special inters for TSD, experimenting with blockchain technology.
Head of standardization in Swift Stephen Lindsay did not disclose any specific details about the work of the working group, but said that the agreement was primarily exploratory in nature.
It’s a complicated area and there are regional differences in how it works, so the main task is to create conditions for joint work of all TSD to actually focus on General terms.
We are not collaborated in the past, because all are working on their TSD standards. But this is a great opportunity to do something even more different from what we all did before.
The working group TSD DLT launched last year, unofficially, in November to formalize their demands, adding the use of standard messaging ISO 20022 Swift.
Zeb Thomas (Thomas Zeeb), CEO of SIX Securities Services and the Chairman of the International securities Association (ISSA), commented on the work of the group.
The working group TSD DLT solves the key problem associated with new technologies – the lack of standards. With the development of industry DLT-specific standards such as ISO 20022 [Swift], will provide an excellent basis from the point of view of existing business practices.