The CSD Working Group has finalized the alignment of a DLT-based product with ISO 20022 standard

The CSD Working Group has concluded the work on the alignment of a DLT-based product with the ISO 20022 standard. The results were presented on a workshop organized by the CSD Working Group on DLT. The workshop has gathered many of the key industry players, including LSE, TMX, ATHEX, Clearstream, IBM, Hyperledger and many members of the working group.

The CSD Working Group of DLT is an international collaboration of central securities depositories focused on producing specifications for DLT-based products and other research of the use of DLT in post-trade. In addition to NSD, the members of the group include CSDs from South Africa, Switzerland, Sweden, Chile, Argentina and UAE. The work on alignment with ISO 20022 has been done in deep collaboration with SWIFT and the French developer SLIB.

During the workshop the participants described the results of aligning requirements for an international e-proxy voting product based on distributed ledger technology with the relevant ISO 20022 standard. The experts outlined the main benefit of this result – that the products built using distinctly new DLT approach do not disrupt the business layer of solution by default, which makes it significantly easier to implement them even in conservative organizations working in complex markets.

“One of the key responsibilities of NSD as a systemically important Russian infrastructure is to define unified standards that enable implementation of new digital products both international and Russian markets. It appears that together with our partners we have managed to create a good working format and cooperation atmosphere aimed at creating new services and lowering the costs for the clients of CSDs”, – mentioned Eddie Astanin, Chairman of the Executive board of NSD during the workshop.

“The application of DLT in the securities industry promises great advances in process automation. SWIFT is delighted to participate in this important project, which will help bring the promise closer to fulfilment. SWIFT’s key contribution is in the area of standards, in particular the application of the ISO 20002 business standard in a DLT technology context. Use of existing business standards will be essential if DLT solutions are to be integrated into the broader industry automation ecosystem”, – said Stephen Lindsay, Head of Standards of SWIFT.

During the workshop the participants have also discussed the potential new direction for the working group. The topic that gathered most interest from the participants was servicing digital assets. The working group will establish its new goal in the few coming weeks.

The latest version of the requirements for the proxy voting is available here.