Russia’s only central securities depository tests blockchain voting system

Rage Review : Russia's only Central Securities Depository (CSD) International Settlement Depository (NSD) announced that it has tested a blockchain voting system. Prior to this test, Nasdaq also conducted the same test in Estonia, solving problems related to shareholder voting. Russian issuers have already begun using electronic technology and following ISO standards for remote voting, which can make voting more transparent and convenient.

Translation: Nicole

The National Settlement Depository (NSD), Russia’s only central securities depository (CSD), announced that it has tested a blockchain voting system.

Under the Securities System Act, NSD provides clearing services for government, municipal and corporate bonds, which make up 99% of corporate bonds issued. The announcement is clearly a follow-up to the US market, where DTCC revealed it is conducting trials of emerging technologies this year.

The NSD created an open-source model using the NXT blockchain system to make it easier for shareholders to vote at the annual general meeting, the press release stated.

The press release explained:

“The E-Proxy voting blockchain model can be registered directly on the distributed ledger and then immediately made available to blockchain participants.”

In a statement, NSD IT director Sergei Putyatinski said that tests have shown that the system can support 80 transactions, or votes per second, but the organization hopes to increase that to 300 transactions per second.

"The next step is to develop the legal and evaluation system for the new model. We will consider the voting system based on their findings."

Since mid-2014, Russian issuing agencies have begun using electronic technology and following ISO standards for remote voting, which makes voting more transparent and convenient.

Prior to this test, Nasdaq also conducted the same test in Estonia, addressing issues related to shareholder voting.