MARKET INFRASTRUCTURE

CSDs see progress for ledger technology in proxy voting

Proxy voting and corporate actions have been touted as the perfect starting point for applying DLT to the post-trade. 

By Joe Parsons joe.parsons@strategic-i.com November 09, 2017 1:11 PM GMT

The application of distributed ledger technology (DLT) for e-proxy voting could go live soon, according to a group of global central securities depositories (CSDs).

The CSD Working Group, comprising of representatives from Clearstream, Strate, Nasdaq, NSD and Swift, explained a DLT-based product using ISO 20022 standards could easily be adopted for e-proxy voting.

One of the main benefits, the Working Group explained, was a DLT approach would not disrupt the business layer of solution by default, allowing easier implementation in conservative organisations working in complex markets.

“It appears that together with our partners we have managed to create a good working format and cooperation atmosphere aimed at creating new services and lowering the costs for the clients of CSDs,” said Eddie Astanin, chairman of the executive board, NSD.

Proxy voting and corporate actions have been touted as the perfect starting point for applying DLT to the post-trade.

Speaking at Sibos 2017 in Toronto last month, John Van Verre, global head of custody at HSBC Securities Services, explained it is working on a proof of concept on proxy voting and corporate action announcements.  

In addition, other market infrastructures and technology vendors have launched blockchain-based initiatives around proxy voting, including Nasdaq, TMX Group and Broadridge.