OCC, a leading equity derivatives clearing organization, has selected Axoni, a technology firm, to develop and implement a distributed ledger technology solution to replace its existing securities lending infrastructure.
Development is slated to begin in the second quarter of 2020, and eventual deployment will be rolled out in various phases. The solution will be deployed using AxCore, Axoni’s distributed ledger protocol, and is slated to be hosted in the cloud.
The vision of the initial roll-out is to establish a permissioned distributed ledger network for cleared stock loan transactions, governed by OCC, with the potential for peer nodes at clearing member firms that will enable participants to have a real time, accurate copy of contract and activity information, reducing the need for manual reconciliation.
“We provide a guarantee of performance and mitigate the risk of loss due to a failure by the original lender or borrower. Our work with Axoni seeks to address industry challenges and reduce costs stemming from manual processes, lack of automation, and disparate systems,” Matt Wolfe, OCC Vice President, Securities Finance.