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Nasdaq to Build a Blockchain Voting system for the South African Exchange Market


Nov 25, 2017 Posted /  8973 Views


Nasdaq to Build a Blockchain Voting system for the South African Exchange Market

New Blockchain Powered Voting system for South African Exchange market

US-based Nasdaq, second world’s largest stock exchange market is slated to build a blockchain based solution for electronic voting for Strate, the company managing the South African stock exchange market. According to the deal signed between Strate and Nasdaq, a Blockchain solution to enable electronic voting by shareholders will be implemented by Nasdaq on the South African stock exchange where Strate is a custodian. Nasdaq is to provide an additional Distributed Ledger Technology  (DLT) designed to help companies and shareholders reduce administrative costs associated with organizing annual general meetings. Strate is to deploy the new hi-tech on the backbone of a proof-of-concept (PoC) project carried out back in 2015 at the NASDAQ’s branch in Estonia.

The Financial Services Board (FSB) of South Africa Licensed Strate to develop technologies to store Equities, Bonds and forex securities in digital form to allow traders exchange ownership of these assets. Currently, the company is serving many stock Exchanges and issuers clients in South Africa. Strate’s Fractal Solutions division manager, Tonya Knowles commented about the deal saying,

“We all need the acknowledge that at the moment the financial environment regulation is at the maximum level, indicating that many inefficiencies and risks are around the corner. This solution will offer a wholesome solution to our clients ranging from transfer secretaries to issuers. ” he added saying that “all Strate’s clients benefit from the development”

Strate To use the Nasdaq Blockchain for Proxy Voting

Strate has had a long-term interest in DLT for its application in Proxy Voting. The company is a member of an international CSD working Group that aims to develop a framework for an electronic proxy voting platform under the ISO 20022 designation. Members of the Group include similar depository companies from Switzerland, Sweden, Russia, Argentina and the United Arab Emirates. The blockchain is being preferred as the underlying technology for the e-proxy voting system because of its abilities to increase un-detested transparency and security while keeping costs to the minimum. In recent time Blockchain has been adopted for numerous similar activities as seen from the recent US-based Multinational corporation P&G adaptation.

NASDAQ’s Executive Vice President and market Technology head  Lars Ottersgard Commented about the deal with Strate in South Africa saying,

“This is an indicator of progress in the capital markets, we are working on technologies to bolster performance while improving efficiencies and Transparencies. We deploy the full potential of blockchain to reduce anomalies in voting and proxy assignment processes at the same time ensuring transparency to stakeholders. Security governance and risk procedures all comes built into the system”



 


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Tags: Blockchain Voting system blockchain Exchange market South African Distributed ledger technology voting platform

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