Canadian financial services company BMO Capital Markets has developed a blockchain-based platform for trading of securities with fixed income.
The company, together with the Pension Fund of teachers in Ontario and the Bank of Moreale successfully conducted a pilot transaction on a new platform to evaluate the viability of using blockchain technology for the securities market.
“Were involved in the transaction Bank of Montreal as Issuer and Ontario Teachers as a buyer one-year Deposit receipts floating rate of 250 million CDN. This was the first issue of securities with fixed income in the canadian dollar, which has demonstrated the viability of the blockchain platform,” — said in a statement.
BMO Capital Markets has designed and built platform using the infrastructure bocchan open source, for testing of the settlement system in the next generation.
The prototype allows the Issuer and the buyer of the securities to review the transaction on the blockchain and verify the correctness of the information about the terms and amounts of payments to maturity of the securities. The solution also reduces costs associated with issuance and turnover of securities.
“This is an important first step in developing a fully functional blockchain-a decision that ultimately will move the primary and secondary trading in securities. We recognize the potential of the blockchain in the capital markets and look forward to continuing to introduce innovative solutions” — said the head of global trading at BMO Capital Markets Kelsey Gunderson (Kelsey Gunderson).
Ontario Teachers’ Pension Plan (Ontario Teachers) is a significant investor — the pension Fund manages assets in the amount of $189,5 billion (as at 31 December 2017). It is the largest occupational pension Fund of Canada, 323 serving thousands of teachers, both former and current.
“Ontario Teachers aims to explore technologies and innovations that can improve service to our members,” said managing Director of the pension Fund Audrey Gaspar (Gaspar Audrey).
Use blokken solutions for the issue of securities and trade in them is one of the most common areas of application of new technologies. Pilot projects in this direction was carried out by Russian MTS and Sberbank CIB, European banks Credit Suisse and ING Group. In Thailand plan to develop blockchain-based platform for issuing and turnover of securities using their own token. The world Bank recently commissioned the largest Bank of Australia issue of international bonds on the blockchain.