Lake Success
12 April 2017
Reporter: Stephanie Palmer

Financial services firms pull off blockchain proxy voting pilot


Broadridge has made its first foray into blockchain technology, completing a pilot for a blockchain-based proxy voting solution, in partnership with J.P. Morgan, Northern Trust and Banco Santander.

The proof of concept used a distributed ledger technology to create a ‘shadow’ digital register of the proxy voting taking place, providing insight into the process throughout the complete voting period from announcement of the meeting date to the annual general meeting itself.

It is intended to improve transparency and analytics in proxy voting, and to allow for role-based access to voting data through cryptography and smart contract technology.

Built on the Ethereum blockchain platform, the pilot supported the annual general meeting of a corporate issuer, with participation from the issuer’s agent Santander Investment.

Vijay Mayadas, senior vice president and global head of corporate strategy at Broadridge, said: “This pilot demonstrates Broadridge’s commitment to developing innovative technology solutions to enhance transparency in the global proxy voting process for the mutual benefit of all stakeholders, ultimately improving corporate governance for all.”

He added: “We believe blockchain will drive increased quality and efficiency in the voting chain by reducing complexity that exists within the process today.”

Justin Chapman, global head of market advocacy and innovation research at Northern Trust, commented: “Corporate governance is a key focus for our custody clients and we are pleased to collaborate with Broadridge on this important initiative.”

He said: “Providing end-to-end vote transparency using blockchain as an enabler has the potential to significantly improve the proxy voting process.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
J.P. Morgan global product management leaves
23 January 2018 | Boston | Reporter: Jenna Lomax
White worked in the Boston office on product management and product development
DTCC proposes changes to “modernise” its US equity market structure
23 January 2018 | New York | Reporter: Jenna Lomax
The proposals look to provide better access to shortened settlement processing options, for both pre-and post-trade transactions, while improving straight through processing
BNY Mellon launches FX prime brokerage service
23 January 2018 | New York | Reporter: Jenna Lomax
BNY Mellon has launched an FX prime brokerage service for its institutional clients
AIMA COO to create Canadian alternatives trade association
23 January 2018 | Toronto | Reporter: Jenna Lomax
Former AIMA COO James Burron is setting up an independent not-for-profit Canadian financial association
AIMA publishes GDPR implementation guide
23 January 2018 | London | Reporter: Jenna Lomax
The guide aims to help members understand and comply with new EU data protection rules that come into effect on 25 May
Saxo Bank extends FX Prime infrastructure
23 January 2018 | London | Reporter: Jenna Lomax
The new infrastructure, which will be available to clients in London and New York, offers full amount execution available through Saxo Bank’s DMA liquidity hubs
James Burron has left AIMA
22 January 2018 | Toronto | Reporter: Jenna Lomax
James Burron has left the Alternative Investment Management Association
More news