KPMG in Sweden is working to support development of a platform based on blockchain technology for the trading of mutual funds in Sweden.
As a result of the variety of technology systems used by participants in Sweden's fund market, the numbers of intermediaries involved in transactions and manual processes for exchanging and verifying information, fund transfers and reconciliations are time-consuming and inefficient. A blockchain-based platform has the potential to bring greater efficiency and transparency to information exchange, record keeping, reconciliation and settlement, which would mean an easier to use, more secure and compliant platform for trading.
An ambitious initiative begun by Nasdaq and Skandinaviska Enskilda Banken (SEB), developed a blockchain-based proof of concept (PoC) for fund execution that would offer greater transparency, efficiency and security. Nasdaq then formed a project consortium, including six banks/fund providers, with the support of the KPMG project team to perform a feasibility study of the PoC and the use of blockchain technology for funds trading.
According to Anders Nilsson, Lead Partner, KPMG in Sweden, “what has been especially important with the prototype is to create a broad acceptance among banks and institutions that the blockchain platform can fulfill business, technical and regulatory requirements, and to determine what the governance process will need to be - these have been critical areas of focus for KPMG.”
Based on the positive outcome of the feasibility study, the consortium has decided to continue the project, aiming to develop a high level design of the blockchain platform to address specific business and IT requirements identified in the study.