TMX applies distributed ledger tech to proxy voting arena
06 April 2017 | 6559 views | 0
Canada's TMX has developed an electronic shareholder voting system prototype based on distributed ledger technology.
Designed in collaboration with Accenture for TSX Trust, TMX's transfer agency and corporate trust services unit, the E-Proxy Voting System prototype aims to improve the efficiency and security of the voting process during annual shareholder meetings.
TMX believes the system will increase engagement in corporate governance actions by removing the need for shareholders to be physically present during the voting process.
TMX is not the only entity exploring the ways in which distributed ledger technology can play a role in the corporate actions arena. In January, Nasdaq reported the successful completion of a proof-of-concept using the technology to streamline proxy voting on companies listed on its Tallinn Stock Exchange, hinting that a wider rollout could be in the pipeline.
South Africa’s Central Securities Depository, Strate has also developed an ethereum-based proxy-voting tool, while tech firm Broadridge is pouring money into the technology across a range of proxy voting platforms.
For its part, TMX has yet to commit to a full-scale roll-out of the technology. John Lee, VP, innovation and enterprise delivery, TMX says: "TMX is proud of the work we have done with our innovative partners at Accenture to develop this blockchain prototype. We continue to explore ways TMX can leverage these new technologies in pursuit of tangible, transformative business solutions for our clients. "