To perform post-trade related activities, Archax, a London-based digital securities exchange, will utilize blockchain powered Corda platform developed by software enterprise R3.
This implies post-trade handling will be done using distributed ledger technology based platform. In this regard, Archax will utilize a private version of Corda Enterprise platform within its network.
Graham Rodford, CEO of Archax, opined that current post-trade procedures in conventional financial markets are carried out through several third parties, leading to high inefficiency. Rodford stated that the use of blockchain technology will improve efficiency of market.
Post-trade procedures begin following the completion of a trade. The process begins with approval of transactions, giving trade info, change ownership data, and exchange cash and securities. Of late, financial institutions across the globe have evinced interest in Corda platform.
As many as 28 organizations, including Raiffeisen and 17 more banks have taken part in the trial of the Ivno Global Tokenized Collateral, the first of its kind using the Corda platform.
In the meanwhile, Russia-based Alfa-Bank has disclosed the launch of an overseas trade finance pilot transaction with the cooperation of Novolipetsk Steel Company, Vesuvius GmbH and Commerzbank utilizing the Corda-based Marco Polo Network.
Last month, Bank of America also became a member of the Marco Polo Network “to tackle trade finance challenges.” The financial institution aims to remove global trade inefficiencies and offer a better service for its customers.
