TMX group uses blockchain to offer proxy voting service

TMX Group, the operator of Canada’s largest stock exchange, announced a blockchain prototype that will power an electronic shareholder voting system, it announced on Thursday.

Working with technology services firm Accenture to develop the prototype, TMX designed an e-proxy voting system that will be available to public companies through TSX Trust, its transfer agency and corporate trust services provider. The technology’s aim is to improve the efficiency and accuracy of the voting process during annual shareholder meetings. A blockchain-based system means that shareholders don’t need to by physically present to vote.

The services was created in response to a consultation paper released by the Canadian Securities Administrators (CAS), says John Lee, vice-president of innovation and enterprise delivery at TMX Group.

“It was something that impacted our business as thought leaders in the space, we wanted to grab the bull by the horns,” he says. “One of the challenges we have is the integrity of the voting system is somewhat challenged. There’s multiple datasets requiring reconciliation across multiple parties.”

That’s a problem that blockchain, the distributed ledger technology that may be best-known as the architecture behind Bitcoin, can help solve. It keeps a record of every transaction in a system on file, stored with each peer that uses the system.

So in a data set that involves votes from shareholders on decisions about who gets to sit on the board, human hands can be removed from the equation and automated tabulating can take place in a secure setting. The system will be used by issuers, brokers, dealers, and intermediaries, to make up thousands of users.

TMX and Accenture started on the project in mid-January, Lee says. It’s not the first stock exchange to use blockchain to solve this problem.

“On a global perspective, competitors have the same industry challenge and they use blockchain in other jurisdictions,” he says. “NASDAQ used it for the private market space.”

It’s just one of many digital efforts ongoing at TMX, he says.

“We’re trying to transform our organization to a digital culture,” he says. “We’re trying to really innovate for our client base.”

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Brian Jackson
Brian Jackson
Former editorial director of IT World Canada. Current research director at Info-Tech

Featured Articles

Empowering the hybrid workforce: how technology can build a better employee experience

Across the country, employees from organizations of all sizes expect flexibility...

What’s behind the best customer experience: How to make it real for your business

The best customer experience – the kind that builds businesses and...

Overcoming the obstacles to optimized operations

Network-driven optimization is a top priority for many Canadian business leaders...

Thriving amid Canada’s tech talent shortage

With today’s tight labour market, rising customer demands, fast-evolving cyber threats...

Staying protected and compliant in an evolving IT landscape

Canadian businesses have changed remarkably and quickly over the last few...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now