CSOP Asset Management and fintech firm Hashstacs (STACS) have completed the prototype of a blockchain-powered platform that allows for automated concurrent processing and real-time, perpetual reconciliation of over-the-counter derivatives trades.

The prototype, built by STACS on its distributed ledger technology-based platform Vetta, aims to eliminate long-standing inefficiencies well recognized in the asset management industry and improve risk management. 

It is part of a long-term collaboration between STACS and CSOP to deploy a live solution for efficient OTC trade processing across different asset classes. The collaboration is supported by the Investment Management Association of Singapore.

CSOP and STACS plan further enhancements to the platform, including the handling of more sophisticated trade exception workflows and seamless resolution of trade breaks.

STACS managing director Benjamin Soh says: “The solution enables efficiencies, risk management, servicing capacity, and an overall increase in profit for all market participants, while ensuring cross-platform interoperability and adherence to international standards of information security. This is definitely a meaningful collaboration that can create vast value and opportunities for the asset management industry and capital markets as a whole.”