Yesterday SWIFT shared the results of its latest corporate actions blockchain pilot, which it declared a success with plans to progress the work. The latest experiments involved six organizations, including American Century Investments, Citi and Northern Trust. In the previous trial, Vanguard was also a participant.
With corporate actions, whether it’s dividends, general meetings or a stock split, the problem is that intermediaries receive data from multiple sources, which invariably does not match. As a result, asset managers, custodians and brokers must do a lot of manual work to establish the correct data. The goal of this pilot is to create a golden copy of the data which is shared amongst the participants.
“Our analysis found that asset managers often receive notifications from up to 100 different sources about the same corporate event, and the data is often different or contradictory from one source to another,” said Jonathan Ehrenfeld, Securities Strategy Director, Swift.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
