Geneva
28 September 2016
Reporter: Drew Nicol
CSDs forge DLT partnership
The central securities depositories (CSDs) of South Africa and Russia have signed a letter of intent to develop a distributed ledger technology (DLT), which will initially focus on proxy voting.

Strate and Russia’s National Settlement Depository (NSD) instigated the partnership at this year's Sibos in Geneva.

According to NSD, which was one of the early adopters of financial organisations to explore the use of DLT for proxy voting, CSDs will benefit from industry-wide collaboration to better face the changes presented by DLT technology.

NSD also highlighted that other CSDs have “expressed interest’” in joining the partnership, which Strate and NSD have welcomed.

In a statement on the partnership, NSD noted: “Given that there is the potential for financial markets to create a distributed ledger that settles securities transactions, financial market infrastructures need to embrace the technology and identify opportunities that will add value to their current clients.”

Monica Singer, CEO of Strate, said: "It is an important time for CSDs to be working together to define the future landscape in the DLT environment. Strate looks forward to developing this long-standing and valuable relationship with NSD to develop solutions for emerging market CSDs.”

Eddie Astanin, chair of the executive board of NSD, added: “We believe that the securities settlement and custody industry is one of the promising sectors where we can use new technologies.”

“I think that post-trading may become the starting point of transition of the distributed ledger technology and blockchain from theory to practice. In 2015, we began research and initiated new developments; since that time we have developed valuable expertise in this sphere, and now we are eager to share it with our colleagues.”

More sibos 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
Sibos: Cultural change is imminent
30 September 2016 | Geneva | Reporter: Stephanie Palmer
The biggest changes to the financial services industry between now and 2020 will be cultural, according to panellists speaking at Sibos 2016...
Sibos: Easier standardised than done
29 September 2016 | Geneva | Reporter: Stephanie Palmer
Standards mean different things to banks and corporate treasurers, but they should collaborate to make them work, according to speakers in a debate session at Sibos...
Sibos: Financial services should lead ‘new era’ of tech, says IBM head
28 September 2016 | Geneva | Reporter: Stephanie Palmer
Cognitive technology will give financial services firms a competitive advantage, as long as they seize the opportunity, keynote speaker Ginni Rometty told Sibos attendees...
Tax services top the outsourcing list
28 September 2016 | Geneva | Reporter: Becky Butcher
Tax services have been identified as the function to most successfully outsource, according to 52 percent of respondents to a SIX Securities Services survey...
Raiffeisen Bank tackles Basel III principles
28 September 2016 | London | Reporter: Becky Butcher
Raiffeisen Bank has implemented SmartStream’s cash and liquidity reporting solution...
Broadridge extends GPTM solution
28 September 2016 | Geneva | Reporter: Becky Butcher
Broadridge Financial Solutions has expanded its global post trade management (GPTM) solution with cash management capabilities...
Sibos: Do the time to prevent cyber crime
28 September 2016 | Geneva | Reporter: Stephanie Palmer
Developments in artificial intelligence and machine learning increase the threat of financial cyber crime, and the financial services industry must be prepared in case of an attack...