Launch year: 2019
Country: Canada

SIDE – A distributed ledger for brokers, custodians and asset managers

Concept description

SIDE Securities Industry Data Exchange, or SIDExchange, is an autonomous distributed ledger technology-based utility that offers a single access point for sell-side and buy-side securities industry participants to securely exchange information. As of July 2020, there are 100 participants connected.

The utility’s backbone is SIDEchainTM, a private distributed ledger based on Hyperledger technology standards.  Sell-side brokers and custodians use SIDExchange to publish their transaction and reporting data. Buy-side clients then access the related data and documents through SIDExchange’s web interface with the ability to extract in PDF, Excel/CSV and email.

SIDE currently provides post-trade subscription services including:

  • Equity and fixed income allocations
  • ETF creation & redemption
  • Trade allocations
  • Trade confirmations
  • Client statements
  • Reconciliation – Fund Accounting and Custody Reporting
  • Commissions and KYC Integration (Next)

SIDEchain was developed with collaboration from CH Alliance member First North Inc. and key industry participants, including a global investment dealer.

Value proposition

SIDE brings value to the investment industry by optimizing operational efficiency, streamlining interactions between trading counterparties, and reducing carbon footprint.

SIDExchange allows the sell-side and custodian to:

  • Digitize end client reporting by transparently posting transaction and statement data through a shared-cost utility, thereby reducing costs of paper based printing.
  • Reducing carbon footprint while ensuring compliance with ESG standards.
  • Onboard buy-side clients in minutes to the platform via a “no-code” web interface.
  • SIDEIntegrate product allows for seamless two-way integration of source data, including transactions, positions and balances.

Benefits for the buy-side include:

  • Single view of all the financial data and documents they’re entitled to from “multiple” participating executing brokers and custodians.
  • Increased automation eliminates the need to log in to multiple sell-side portals to perform reconciliations and investigate breaks.
  • Data and documents stored on SIDEchain Ledger, which provides a highly secure and immutable audit trail that can be made available by Participants directly to their auditors and compliance officers.
  • SIDE’s Keystone product provides automatic reconciliation reporting via a cost-effective subscription-based model.

Illustration (Video)

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