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State Street, Vanguard and Symbiont use blockchain to complete live trading of Forex forward contracts

State Street Corporation (NYSE: STT) today collaborates with Vanguard and Symbiont on a 30-day forex forward contract live transaction margin calculation process using Symbiont’s distributed ledger assembly. Announced that it was completed. Technology.

Both companies block forex futures and swap margin processing with the aim of achieving post-transaction workflow automation and efficiency while significantly reducing counterparty credit risk in the over-the-counter currency market. We are actively exploring innovative applications for chain technology. ..

Ultimately, by leveraging the benefits of blockchain technology primarily in the manual currency forward market, the underlying contract is instantiated, signed, executed and documented in a single immutable record. It digitally protects transactions and enables automation during that period. Deploying these contracts to DLT facilitates more frequent and automated assessments, while allowing parties in the network to move and settle collateral instantly. This significantly reduces counterparty risk and streamlines the forward process, which can lead to open margins.

“State Street Digital is working with both Vanguard and Symbionto on this monumental industry initiative to reduce your operational challenges through process automation and state-of-the-art technology, secured forex forwards. We are very pleased to have digitized the contract merging process. ” “The newly launched division, State Street Digital, was founded to drive innovation and tackle the digital transformation of the industry,” said Nadine Cha-Ka, Head of State Street Digital. We thank you for your joint collaboration and look forward to future partnerships and further development of digital capabilities for the crypto and digital asset environment. “

Warren Pennington, Head of Investment Management FinTech Strategy Group at Vanguard, said: “We are pleased to partner with State Street and Symbiont in the world’s first digitally secured linked currency forward trading margin process. By leveraging state-of-the-art decentralized ledger technology to reduce and automate counterparty risk. , Brings a huge leap to the foreign exchange market structure. Formerly a manual process, mitigates potential disputes through a standardized calculation process. Reduced risk and increased speed reduces investor costs. And leads to improved results. “

“Today’s announcement marks a time of transformation in financial services and marks the evolution of blockchain as an ideal technology solution for forex contracts. Our market is still managing risks overnight. Lack of an efficient, real-time, common infrastructure for evaluating transactions, calculating margin claims, and moving assets between counterparties as defined in the Legal Agreement (ISDA / CSA). It hinders the credit and consequent transaction prices that both companies are willing to extend to each other. Symbiont CEO Mark Smith commented:

State Street, Vanguard and Symbiont use blockchain to complete live trading of Forex forward contracts

Source link State Street, Vanguard and Symbiont use blockchain to complete live trading of Forex forward contracts

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