Societe Generale announces the successful completion of a collateralized market transaction “fully” executed on blockchain via its subsidiary Societe Generale – FORGE.
This is reportedly the first repo transaction (Sale and Repurchase Agreement) in digital securities (Security Tokens) with an Eurosystem’s central bank.
As explained in the update, Societe Generale deposited as collateral with the Banque de France some bonds issued in 2020 on the public Ethereum blockchain in “exchange of Central Bank Digital Currency (CBDC) issued by the Banque de France on its DL3S blockchain.”
This transaction is said to demonstrate the technical “feasibility of interbank refinancing operations directly on blockchain.”
It illustrates the potential of a Central Bank Digital Currency in order to improve the “liquidity of digital financial securities.”
This deal reportedly demonstrates Societe Generale’s commitment to leveraging its financial structuring expertise and SG-FORGE’s technological capabilities to “contribute building innovative financial markets.”
As covered earlier this year, DTCC, the post-trade market infrastructure for the global financial services industry, announced that Societe Generale is reportedly the first Prime Broker to leverage CTM’s automated tri-party trade matching workflow as the industry prepares for the increased focus on global accelerated settlement requirements.
CTM’s capability streamlines trade communications “between Hedge Funds, Prime Brokers and Executing Brokers.”
Initially launched to support EMEA securities markets, the firm plans to expand “access to the functionally to other markets in the future.”
As the global financial services industry prepares globally for increased accelerated settlement initiatives, firms are “looking closely at their post-trade processes.”
Currently, Prime Brokers receive details from Hedge Funds in a multitude of formats and at varying times “throughout execution day and sometimes T+1, creating delays to post trade processing.”
With CTM’s new tri-party matching capabilities, CTM standardizes and automates Hedge Fund trade file delivery, “ensuring trade details are communicated real time, further enabling a no touch trade processing flow.”
The workflow leverages CTM’s automated central matching functionality and provides Prime Brokers with a golden copy of transaction details “when a trade match between a Hedge Fund and an Executing Broker takes place, bringing real time standardization and automation to the trade allocation process.”