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.
