CSOP ASSET MANAGEMENT, SINGAPORE’S STACS COMPLETE OTC DERIVATIVES TRADE PROCESSING PROTOTYPE

KUALA LUMPUR, Feb 9 (Bernama) -- CSOP Asset Management Pte Ltd (CSOP) and leading Singapore FinTech firm, Hashstacs Pte Ltd (STACS) announced the completion of their Over-the-Counter (OTC) Derivatives Trade Processing prototype, built by STACS on its Distributed Ledger Technology (DLT)-based platform, Vetta.

Set in the context of the Asset and Wealth Management industry, the teams collaborated closely over the course of two months to build a blockchain-powered platform that allows for automated concurrent processing and real-time, perpetual reconciliation of OTC derivatives trades.

The adoption of DLT and smart contracts in this collaboration aims to enable new market opportunities and operating models, eliminating long-standing inefficiencies well-recognised in the industry and improving risk management, according to a statement.

This is part of the long-term collaboration between STACS and CSOP to deploy a live solution for efficient OTC trade processing across different asset classes. The platform aims to eliminate and streamline bespoke trade matching parameters and resolve trade exceptions in real-time.

Deputy Chief Executive Officer at CSOP Singapore, David Ng said: “Partnering with STACS on this platform will allow CSOP to address the huge fragmentation across the entire industry, where different banks and brokers have developed their own set of varying practices along the entire trade matching and settlement process.”

The collaboration is supported by the Investment Management Association of Singapore (IMAS), the national representative body that spears the development of the fund industry in Singapore.

The platform was successfully delivered over sprints within two months, where trades were captured on the STACS blockchain immutably to provide trade participants with a single source of truth.

Given that the OTC trades are highly bespoke and unstandardised, the collaboration would also see the incorporation of machine learning algorithms and optical character recognition technology to facilitate automatic data ingestion and transformation of unstandardised and unstructured trade parameters.

-- BERNAMA