TD Securities has joined the Paxos Settlement Service for Commodities.
Paxos is enabling simultaneous settlement of cash and commodities, a first for the precious metals market. By joining the blockchain infrastructure platform’s service, TD Securities will be able to facilitate fully automated settlement and streamline operations across both traditional and digital precious metals trades.
By bridging the gap between cash and asset settlement, credit risk will be reduced and capital efficiencies increased, the firms say. Additionally, efficiency and common standards for commodities settlement will be improved.
Joe Quinlan, global head of FX and commodities middle office at TD Securities, says: “Bridging the longstanding gap between cash and asset settlement networks, as well as collecting settlement obligations in a controlled way that mitigates risk, are fundamental elements to creating safe settlement for the commodities market. Aside from the risk mitigation, joining this settlement network enables us to drive significant benefits to our processes, increasing our overall settlement efficiency.”
Anoushka Rayner, head of growth for commodities at Paxos, comments: “In plugging the gap between cash and asset settlement, credit risk is reduced and capital efficiencies are realised, delivering real benefits to market participants such as TD Securities from day one.
“Not only does Paxos deliver simultaneous settlement but the Paxos Settlement Service also acts as a hub to accommodate all counterparty settlements regardless of whether the counterparty is on the network. TD Securities will be able to optimise its commodities business with full automation from post-trade confirmation to final settlement.”
