Yesterday Vanguard announced that the company in close collaboration with the Center for Research in Security Prices (CRSP) and technology provider Symbiont seeks to simplify the index data sharing process through blockchain technology.
The partnership will enable index data to move instantly between index providers and market participants over one decentralized database.
Using this platform, investment managers will be able to instantly distribute, receive, and process index data, resulting in better benchmark tracking and significant cost savings that potentially results in better returns for our clients.
Global Head of Investment Management Group, Vanguard
Over the last several months, CRSP has distributed daily index data to Vanguard in a testing environment through Symbiont’s blockchain platform. Delivering the data via a blockchain and automating workflows with smart contracts has served to expedite data delivery, eliminate the need for manual updates, and reduce risks.
The success of the project will enable automation of CRSP index data delivery and intra-day updates over the private blockchain network in early 2018. Vanguard, Symbiont, and CRSP will also use the results of this initiative to influence future blockchain efforts.