18 May 2017
Santiago
Reporter: Drew Nicol

Chile to launch securities lending blockchain


Chile’s Santiago Exchange will become the first Latin American exchange to offer a blockchain-based short selling solution for securities lending.

The Santiago Exchange is partnering with technology giant IBM for the solution, which will be based on the open source Linux Foundation’s Hyperledger Fabric.

In a joint statement on the partnership, IBM and the exchange pledged that the solution will be widely available to support multiple parties across the country’s financial industry ecosystem this year.

According to the statement, the solution is designed to help reduce errors, possible fraud, and processing time for each transaction, while also improving transaction management and lowering costs.

In the case of the Santiago Exchange, the solution will result in significant time savings for the back-office processes.

Andrés Araya, CIO of Santiago Exchange, said: "The stock exchange is a technologically advanced company, which provides the infrastructure and systems for all types of securities transactions and their clearing and settlement.”

“The stock exchange also provides information services and management systems for intermediaries. Incorporating blockchain into our business processes is in line with that purpose and positions us as a forerunner in the financial market.”

IBM Chile general manager, Francisco Thiermann, added: "Our agreement with Santiago Exchange marks another new era of innovation in the stock market. Santiago Exchange is a pioneer in its industry, and the blockchain adoption establishes a transformational precedent in the financial market, not just in Chile but in this region and the world."

More technology news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
US class action lawsuit opens door to blockchain lending
16 January 2018 | London | Reporter: Zsuzsa Szabo
Blockchain startup Lendingblock is positioning itself to be an antidote to market problems identified in the ongoing US pension funds' class action lawsuit
Comyno opens DLT hub in Serbia
09 January 2018 | Serbia | Reporter: Zsuzsa Szabo
The Frankfurt-based fintech company Comyno has opened a new distributed ledger technology (DLT) hub in Belgrade, Serbia
The new model means the startup will instead rely on revenue generated from back-end services such as securities lending and repo.
Citi and CME Clearing launch collateral DLT platform
18 December 2017 | New York | Reporter: Zsuzsa Szabo
The blockchain software aims to reduce margin cost
ICMA maps repo and cash bond operations
22 November 2017 | Zurich | Reporter: Zsuzsa Szabo
ICMA has launched a free-to-read mapping directory for more than 80 technology solutions for repo and cash bond operations
OneClearstream now live and trading
15 November 2017 | Frankfurt | Reporter: Drew Nicol
Clearstream has launched OneClearstream, a new collateral management service aimed at automating collateral transfers across depositories
AI can lead us to harmony, says Clearstream
14 November 2017 | Luxembourg | Reporter: Jenna Lomax
Clearstream claims that new technological developments such as artificial intelligence and blockchain will support the market to overcome barriers to harmonisation