SINGAPORE–(BUSINESS WIRE)–CSOP Asset Management Pte. (“CSOP”) and Singapore’s leading FinTech company, Hashstacs Pte Ltd (“STACS”) today announced the completion of their over-the-counter (“OTC”) derivatives trading processing prototype, built by STACS on its Distributed Ledger Technology (“DLT”) platform, Vetta. In the context of the asset and wealth management industry, the teams collaborated closely for two months to create a blockchain-based platform that enables automated concurrent processing and real-time perpetual reconciliation of transactions. on OTC derivatives. The adoption of DLT and smart contracts in this collaboration aims to create new market opportunities and new operating models, eliminating long-standing inefficiencies well recognized in the industry and improving risk management.
This is part of the long-term collaboration between STACS and CSOP to deploy a live solution for efficient processing of OTC transactions across different asset classes. The platform aims to eliminate and streamline bespoke exchange matching parameters and resolve trade exceptions in real time.
The collaboration is supported by the Investment Management Association of Singapore (IMAS), the national representative body spearheading the development of the fund industry in Singapore.
The platform was successfully delivered over two-month sprints, where transactions were captured on the STACS blockchain in an immutable way to provide trading participants with a single source of truth. Smart contracts have also been deployed to automate and streamline the matching of trade parameters between CSOP and its counterparties.
Other platform enhancements in the works include handling more sophisticated business exception workflows and seamlessly resolving business disruptions. Since OTC transactions are highly personalized and non-standardised, the collaboration would also see the incorporation of machine learning algorithms and optical character recognition technology to facilitate automatic data ingestion and parameter transformation. unstandardized and unstructured trading. Visibility of incoming transactions will also be provided to both parties, with each transaction record stored in an audit log, increasing data transparency and auditability.
Future phases would go beyond trade matching to also facilitate transparent trade settlement. Ultimately, STACS and CSOP aim to push the industry’s boundaries in OTC transaction processing, incorporating a broader ecosystem of market participants into this industry-wide platform interoperable with existing systems, in order to relieve the financial sector of the heavy operational burden in times of trading volatility. and enable the industry to collectively benefit from the adoption of new technologies to solve key trade processing challenges and seize new strategic business opportunities.
Benjamin Soh, Managing Director at STACS, said, “We are delighted to be part of this collaboration with CSOP Asset Management to provide a state-of-the-art live functional platform for efficient processing of OTC derivatives transactions via distributed ledger technology. The solution enables efficiencies, risk management, service capacity and overall increase in profits for all market players, while ensuring cross-platform interoperability and compliance with international security standards. information. This is undoubtedly a meaningful collaboration that can create tremendous value and opportunity for the asset management industry and financial markets as a whole. »
David Ng, Deputy Managing Director of CSOP Singapore, said, “Partnering with STACS on this platform will enable CSOP to address the huge fragmentation across the industry, where different banks and brokers have developed their own set of varied practices throughout the process of matching and settlement of transactions. With STACS, we hope to reduce these cumbersome and risky processes while ensuring transparency and data security. Additionally, we will be able to collaborate with our partners to create dynamic ecosystems, better operational intelligence, analytics and audit readiness. This would allow asset managers to channel their efforts into real value-added activities rather than a manual workload, as well as equip and familiarize themselves with new technologies for a more digital future.
As a blockchain platform provider, STACS, Singapore’s leading Environmental, Social and Governance (“ESG”) finance FinTech company, STACS, provided its DLT platform as well as a vast expertise in the field, thanks to its ongoing partnerships.1 with major global banks, stock exchanges and asset managers. The Monetary Authority of Singapore (MAS) and STACS recently released a high-profile partnership announcement on the creation of the Project Greenprint ESG Register, a DLT-based platform that provides access to quality ESG data from various sectors. manufacturers and improves the mobilization of ESG capital. This Greenprint ESG register forms the heart of the STACS Vetta platform, which enables effective sustainable finance for financial institutions and businesses of all sizes.
STACS (Hashstacs Pte Ltd) is a Singaporean ESG-focused FinTech company, partnering with the Monetary Authority of Singapore (MAS) for the Project Greenprint ESG Registry. STACS serves as the Nexus of ESG Finance with its live blockchain infrastructure that enables efficient sustainable finance and unlocks value in asset and wealth management and digital securities. Its clients and partners include global banks, exchanges, asset managers and corporations. STACS is The Asset Triple A Digital Awards 2021 FinTech Start-Up of the Year, winner of the MAS Global FinTech Innovation Challenge Awards 2020, and also a two-time winner of the proof of concept of technology and innovation of the financial sector ( FSTI) (POC), under the Financial Sector Development Fund administered by MAS.
About CSOP Asset Management Pte. ltd. (CSOP)
In 2008, CSOP Asset Management Limited (“CSOP”) was founded in Hong Kong, becoming the first offshore entity created by a regulated Chinese asset manager. After more than a decade of development at China’s doorstep, CSOP has expanded its operations in Singapore, bringing Chinese investment closer to investors in Singapore and the region. CSOP Asset Management Pte. ltd. is a licensed retail fund management company with the MAS. Its main business activities are the issuance of ETFs listed on the Singapore Stock Exchange and Singapore-domiciled fund vehicles that house alternative investment strategies such as index-based quantitative investment strategies.
1 In 2021, STACS announced its partnership with financial institutions including (in alphabetical order) Aviva Singlife, BNP Paribas Securities Services, Bursa Malaysia, Citi, Deutsche Bank, Eastspring Investments, InvestaX, Mastercard, OCBC Bank, UBS, Union Bank of the Philippines, and UOB, as well as companies from various sectors.