SGSS and OFI Asset Management execute the first transactions via blockchain on the Paris market
SGSS and the asset management firm OFI Asset Management (OFI AM) have announced the first transactions (proof of concept) via the IZNES platform, based on the blockchain developed by startup SETL.
Several investor orders for the subscription and redemption of units in the fund managed by OFI AM, for which SGSS is the depositary, were executed on the IZNES platform using the SETL blockchain. Those orders were then registered by SGSS with the central depository ESES – Euroclear France.
The conclusive results of the trial illustrate the efficient integration of new technologies within the securities services business unit. Adaptation to new technologies is a major challenge for the industry and is at the heart of the digital strategies adopted by OFI AM and SGSS. These results also demonstrate the capacity of SGSS to support its clients with emerging changes, which will
create a more direct relationship between asset managers and investors.
Distributed ledger technology will improve identification of holders and reduce the associated operational workload as well as the workload resulting from the application of deadlines for placing orders.
“We are delighted with the constructive collaboration we have had with the teams at Societe Generale Securities Services, as Depositary of UCI units, leading to the success of these transactions. We believe that SGSS is one of the players best placed to support forthcoming technological changes, particularly via blockchain,” says Patrick Hobin, Operations Director at OFI AM.
“The SGSS teams were the first to execute this type of transaction on the Paris market. We are very proud of having been able to support this initiative, which creates numerous opportunities for our clients,” explains Damien Jamet, Head of Innovation, Motion & Programs at SGSS.
In addition to OFI AM, other management companies are also involved in the IZNES project1, a pan-European platform for buying and selling UCIs, which seeks to promote a closer relationship between management companies and investors.
1 For more information about Iznes, visit the website: http://www.iznes.io/