Global FinTech leader Broadridge Financial Solutions Inc., has been awarded a patent by the U.S. Patent and Trademark Office for blockchain technology that will enrich the process of proxy voting and repurchase agreement.
Repurchase Agreement More Efficient With Blockchain Technology
Leveraging the distributed technology for the proxy process can provide deeper insights into vote counts while allowing participants to view other details such as daily progress. A proxy vote is a vote cast by an individual on behalf of a representative of a corporation who would prefer a proxy vote rather than attending the shareholder meeting.
According to Barakat, the use of blockchain in proxy voting will present end-to-end confirmation. The blockchain based proxy voting will enhance the experience for stakeholders.
Broadridge’s Vice President of corporate strategy Horacio Barakat, told Bloomberg “Broadridge is employing blockchain technology to enhance proxy voting through increased levels of corporate governance and transparency, security and operational efficiency,”
The New-York based investor services company will also exert the patent to enhance speed and efficiency in the repo agreement market for securities.
Broadridge uses permissioned distributed ledger technology, in which participant that have been granted access can only view the transactions. The blockchain technology will enhance security, validation, quality assurance, record keeping for proxy processing.
Increased Transparency in Proxy Voting
In a bid to augment global proxy vote transparency, Broadridge will extend it end-to-end proxy solution suite with banking institutions.
On distributed ledger technology’s entry to the finance sector, Broadridge’s Chief Operating Officer Tim Gokey, said: “This blockchain patent is a significant milestone in Broadridge’s commitment to driving the innovation roadmap for the financial services industry. Through the invention of technology-based solutions, we aim to increase efficiency in the market and provide real business value for our clients that enable them to get ahead of today’s challenges and to capitalize on tomorrow’s opportunities.”
Last year, Broadridge Financial Solutions, trade processing technology provider also completed a pilot program in collaboration with two French banks: Natixis and Societe Generale. The pilot program was focused towards logging bilateral repo agreements more securely. Broadridge also initiated another pilot project last year in association with JP Morgan and Banco Santander aimed at proxy voting.
The revolutionary distributed ledger technology has the potential to reinvent the financial sector. Recently, a survey from Financial Executives Research Foundation (FERF), an affiliate of Financial Executives International, highlighted that 30 percent of financial executives would invest resources towards blockchain technology.
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