Equity derivatives clearing organization OCC has selected portfolio company Axoni to help it replace its securities lending infrastructure with distributed ledger technology.
With stock loan clearing volumes growing at a rapid rate, a move to DLT is being readied that will use 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, slashing manual reconciliation. Matt Wolfe, VP, securities finance, OCC, says: "Our work with Axoni seeks to address industry challenges and reduce costs stemming from manual processes, lack of automation, and disparate systems. The new platform lays the foundation for a future-fit CCP securities lending model."