NSD and CSD Community advance blockchain
January 16, 2018

Russia's National Settlement Depository (NSD) reports that the CSD Working Group on distributed ledger technology (DLT) of which it is a part, has signed a a Memorandum of Understanding (MOU) with SWIFT.

In addition to the NSD, the group includes Strate (the CSD of the South African Republic), SIX Securities Services (the international CSD located in Switzerland), Nasdaq (CSD in Baltics and worldwide CSD technology provider), DCV (Chile's CSD), Caja de Valores (Argentina's CSD), and ADX (United Arab Emirates' depository).

The NSD says the MoU is focused on the CSDs' joint efforts to develop the applied use of blockchain technology in the post-trade sector. In particular, securities processing, particularly in areas requiring multi-party contact, such as corporate actions, currently includes highly cumbersome multi-stage procedures (for example, manual processing) that carry significant inherent costs.

As part of the signed MOU, product requirements for an e-voting solution based on blockchain that includes common principles and message exchange standards (ISO 20022) have been defined.

"To ensure interoperability and smooth migration, it is crucial that new technologies support existing common standards, first of all, ISO 20022," says Stephen Lindsay, Head of Standards at SWIFT. "The promise of the technology on paper is great, but it is currently missing a key component around standardization. There is clear value in re-using established business definitions and facilitating interoperability amongst DLT implementations, which this project will demonstrate."

Other goals include fostering collaboration amongst the CSD community in researching and elaborating on technologies and services, including smart contracts, to account for and store promising digital assets, resulting from ICOs.

Says Eddie Astanin, Chairman of the NSD's Executive Board: "The reason why NSD is working on finding areas to use blockchain and FinTech (financial technology) in general, is due to the new post-trade technologies' potential. Based on our experience, blockchain, smart contracts, and other FinTech solutions may significantly upgrade the quality of services provided to our existing and potential clients. In this context, international cooperation based on the win-win principle will considerably increase the efficiency of such findings and contribute to industry development in general."





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Russia's National Settlement Depository (NSD) reports that the CSD Working Group on distributed ledger technology (DLT) of which it is a part, has signed a a Memorandum of Understanding (MOU) with SWIFT.

In addition to the NSD, the group includes Strate (the CSD of the South African Republic), SIX Securities Services (the international CSD located in Switzerland), Nasdaq (CSD in Baltics and worldwide CSD technology provider), DCV (Chile's CSD), Caja de Valores (Argentina's CSD), and ADX (United Arab Emirates' depository).

The NSD says the MoU is focused on the CSDs' joint efforts to develop the applied use of blockchain technology in the post-trade sector. In particular, securities processing, particularly in areas requiring multi-party contact, such as corporate actions, currently includes highly cumbersome multi-stage procedures (for example, manual processing) that carry significant inherent costs.

As part of the signed MOU, product requirements for an e-voting solution based on blockchain that includes common principles and message exchange standards (ISO 20022) have been defined.

"To ensure interoperability and smooth migration, it is crucial that new technologies support existing common standards, first of all, ISO 20022," says Stephen Lindsay, Head of Standards at SWIFT. "The promise of the technology on paper is great, but it is currently missing a key component around standardization. There is clear value in re-using established business definitions and facilitating interoperability amongst DLT implementations, which this project will demonstrate."

Other goals include fostering collaboration amongst the CSD community in researching and elaborating on technologies and services, including smart contracts, to account for and store promising digital assets, resulting from ICOs.

Says Eddie Astanin, Chairman of the NSD's Executive Board: "The reason why NSD is working on finding areas to use blockchain and FinTech (financial technology) in general, is due to the new post-trade technologies' potential. Based on our experience, blockchain, smart contracts, and other FinTech solutions may significantly upgrade the quality of services provided to our existing and potential clients. In this context, international cooperation based on the win-win principle will considerably increase the efficiency of such findings and contribute to industry development in general."



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