New Blockchain Solution to Enhance Investors’ Customer Experience and Streamline Shareholder Meeting Preparation Process.
Warszawa - 13 Oct 2017: The Central Securities Depository of Poland (Krajowy Depozyt Papierów Wartościowych; KDPW) and IBM (NYSE: IBM) today announced the development of the first distributed ledger technology-enabled capital markets project in Poland, built on Hyperledger Fabric. The prototype eVoting solution is designed to increase the involvement of investor in the voting on resolutions of the shareholder meetings. This is unique tool for correspondence voting using electronic communication. The platform will improve shareholders meeting preparation, handling of voting and transparency of the entire process.
The law regulating capital market in Poland has created market participants the possibility of using modern technology and correspondent voting on resolutions in the agenda of the shareholders' meeting, but we are only now making this opportunity real based on the Hyperledger Fabric. Thanks to this technology, the preparation and conduct of the shareholders’ meetings can be fully digitized while simultaneous fulfilment of regulatory requirements in terms of shareholder identification and the security of electronic communications. We count on considerable interest from listed companies and investors to obtain a cheaper, easier yet secure ability to use their rights to decide on company matters.
In Poland registration as well as settlement of financial instruments is executed with the participation of The Central Securities Depository of Poland (KDPW). Polish CSD offers also a wide-range of services for issuers (corporate actions), including the support of general meetings of shareholders. The new eVoting system will provide KDPW and other participants such as listed companies, banks and brokerage houses, with a shared view on voting rights in near real-time and access to credible results of correspondent voting. The blockchain will provide a shared, immutable ledger, recording details of the general shareholders meeting, list of resolutions subject to voting, and the voting rights assigned to investors and individuals. This can establish greater accountability and transparency among network participants, and help deliver their services more efficiently.
Mr. Sławomir Panasiuk, Vice President of KDPW said, “KDPW is dedicated to offering services to capital market participants in Poland and other European countries, and we strive to use new technologies to bring more choice and better experience for investors. Following the implementation of this distributed ledger-enabled eVoting prototype, and providing that the technology brings expected advantages compared to existing solutions, we plan to develop the product into fully functional solution, in order to optimise the shareholders meeting management process.”
“Blockchain enables independent businesses to transact with less friction and more trust. Working with KDPW and partners across the capital market ecosystem, IBM Blockchain is helping businesses digitize transactions and improve the investor experience,” said Karolina Marzantowicz, IBM Distinguished Engineer. “While working with KDPW on the prototype we have seen that traditional technologies are not able to provide such far-reaching clarity and transparency while maintaining the privacy of shared data. This work sets a standard for B2B and B2C transactions in capital market.”
The solution is under prototype development and is expected to be available for testing in the fourth quarter of this year. The platform which underpins the prototype is the first enterprise-ready distributed ledger service based on the Linux Foundation's Hyperledger Fabric version 1.0. Hyperledger is an open source collaborative effort created to advance cross-industry blockchain technologies.
Krajowy Depozyt Papierów Wartościowych (Central Securities Depository of Poland, KDPW) is the central securities depository on the Polish capital market. Its main functions include the registration and safe-keeping of financial instruments, services for issuers, issuance of security and legal entity identifiers (LEI, ISIN, CFI, FISN), operation of the Trade Repository KDPW_TR, development of international operational links, management of the Compensation Scheme and the Guarantee Fund (pension funds). For more information about KDPW, please visit www.kdpw.pl.
IBM is the leader in open-source blockchain solutions built for the enterprise. As an early member of Hyperledger, an open source collaborative effort created to advance cross-industry blockchain technologies, IBM is dedicated to supporting the development of openly-governed blockchains. IBM has worked with more than 400 clients across financial services, supply chains, IoT, risk management, digital rights management and healthcare to implement blockchain applications. For more information about IBM Blockchain, visit www.ibm.com/blockchain.