The TMX Group today announced the launch of the prototype of a proxy voting system built on distributed ledger technology (DLT), also known as blockchain technology. This system, it says, could improve the shareholder voting process and boost shareholder democracy.
The E-Proxy Voting System, developed for TMX’s transfer agency and trust business, TSX Trust, aims to improve the efficiency, accuracy, and security of the proxy voting process. Additionally, the TMX suggests that the new system could improve shareholder engagement by eliminating the need for shareholders to be physically present during the voting process.
Advocates for DLT are touting it as a way of cutting costs, improving efficiency and enhancing security in a variety of back-office applications, such as clearing and settlement.
“We continue to explore ways TMX can leverage these new technologies in pursuit of tangible, transformative business solutions for our clients,” said John Lee, vice president, innovation and enterprise delivery with TMX Group.
Consulting firm Accenture worked with TMX to help design and develop the new shareholder voting prototype.
“Leading-edge exchanges around the world are embracing the potential for blockchain technology to reinvent client services,” said David Treat, managing director of Accenture’s financial services industry blockchain practice. “TMX’s approach aligns with our vision and commitment to making blockchain technology a paradigm-shifting reality within the capital markets sector.”
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