New proof of concept to test e-Voting on DLT
SWIFT joins forces with industry to test DLT-based e-Voting solution
SWIFT is partnering with leading securities software provider SLIB and the Singapore Exchange (SGX), along with Deutsche Bank, DBS, HSBC and Standard Chartered Bank to explore whether Distributed Ledger Technology (DLT) can help simplify the exercise of shareholder’s rights, bringing new efficiencies to market participants.
Achieving new efficiencies through automation
Shareholder voice in corporate decision-making is stifled by the existing paper-based voting process. Technology is the solution to enhancing shareholder voice.
Tony Lewis, Head of Securities Services, HSBC
Today, the exercise of shareholders’ rights can be cumbersome and the voting processes associated with shareholder meetings are often time-consuming and resource intensive. Proxy voting, in particular, frequently results in error-prone and complex manual processes, which the industry can avoid by fostering greater transparency and automation.
Reflecting on the current securities landscape and the potential launch of the e-Voting, Soh Ee Fong, Group Head, Securities and Fiduciary Services, DBS, said: “An innovative and seamless e-Voting platform in this industry is long overdue and DBS is pleased to join SWIFT in the PoC as both issuer and participant.”
“With this solution, shareholder meetings will not be the same again. As the world’s best digital bank, DBS is proud to contribute our digital experience to help bring forward this initiative.”
About the e-Voting proof of concept (PoC)
The PoC, which will run in the first half of 2019, will test the deployment of a voting solution in collaboration with issuers and a Central Securities Depository (CSD), where this information is managed on a permissioned private blockchain.
It will also assess the viability of hybrid solutions based on ISO 20022, which will combine messaging with DLT in order to foster interoperability and avoid market fragmentation.
In addition, this PoC will test SWIFT’s capacity to host applications in its sandbox and to reuse its security and interface stack.
The PoC is also designed to confirm the use of ISO 20022 as the foundation for standardising Application Programming Interfaces (APIs) that expose DLT node contents to parties with direct access to the ledger.
SWIFT will facilitate the PoC in its DLT sandbox-testing environment and participants will use the SWIFT network, as well as their existing SWIFT infrastructure and interfaces to access, test and validate the applicability of DLT.
Deutsche Bank, HSBC and Standard Chartered Bank will be joining as participants, DBS and SGX will be joining both as participants and as issuers.
Read the full release to hear more about the initiative and what the participants are saying.