15 December 2017
visit www.aciworldwide.com

DTCC to build post-trade distributed ledger framework for derivatives

09 January 2017  |  8305 views  |  0 One way sign

New York's Depository Trust & Clearing Corporation (DTCC) has selected IBM, in partnership with Axoni and blockchain consortium R3, to overhaul its Trade Information Warehouse to handle post-trade processing of derivatives contracts over a distributed ledger framework.

The TIW service currently automates the record keeping, lifecycle events, and payment management for more than $11 trillion of cleared and bilateral credit derivatives.

The DTCC says the initiative will reduce the cost of derivatives processing across the industry by eliminating the need for "disjointed, redundant processing capabilities and the associated reconciliation costs".

The planned revamp has been developed with input from key market participants including Barclays, Citi, Credit Suisse, Deutsche Bank, JPMorgan, UBS and Wells Fargo, as well as market infrastructure providers, IHS Markit and Intercontinental Exchange.

Development is expected to start this month, with IBM acting as programme manager for a hosted service which will place peer nodes at participating firms. Axoni will provide distributed ledger infrastructure and smart contract applications, while R3 will provide advisory support.

The project will build on Axoni’s AxCore distributed ledger protocol which will be submitted to Hyperledger when the system goes live, anticipated in early 2018.

The move follows the successful completion of a proof-of-concept (POC) for North American single name Credit Default Swaps (CDS) last year with DTCC, Axoni, IHS Markit and several market participants.

Bridget Van Kralingen, SVP, IBM Industry Platforms, bills the programme as one of the most groundbreaking distributed ledger projects to date in the financial services industry.

"DTCC together with its member banks are reimagining the credit derivatives process," she says. "The combined expertise of IBM and our partners enables us to provide DTCC with a resilient, open and innovative new technology platform to support this groundbreaking opportunity."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Big banks prepare $20 million funding round for Axoni - Reuters

Big banks prepare $20 million funding round for Axoni - Reuters

20 December 2016  |  12787 views  |  0 comments | 8 tweets | 4 linkedin
Barclays and Citi test blockchain tech for equity swaps processing

Barclays and Citi test blockchain tech for equity swaps processing

18 October 2016  |  13706 views  |  0 comments | 26 tweets | 22 linkedin
DTCC shifts reference data services to AWS cloud

DTCC shifts reference data services to AWS cloud

13 July 2016  |  5347 views  |  0 comments | 5 tweets | 10 linkedin
Major banks perform successful test of smart contracts in CDS market

Major banks perform successful test of smart contracts in CDS market

07 April 2016  |  9993 views  |  0 comments | 6 tweets | 11 linkedin
DTCC trials distributed ledger tech for repo market

DTCC trials distributed ledger tech for repo market

29 March 2016  |  5919 views  |  0 comments | 10 tweets | 7 linkedin
Rise in collateral settlement fails has huge implications - DTCC Euroclear paper

Rise in collateral settlement fails has huge implications - DTCC Euroclear paper

23 February 2016  |  4272 views  |  1 comments | 4 linkedin
DTCC calls for industry coordination on distributed ledger tech

DTCC calls for industry coordination on distributed ledger tech

25 January 2016  |  7856 views  |  0 comments | 10 tweets | 13 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.thomsonreuters.infovisit www.atos.net

Top topics

Most viewed Most shared
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
10457 views comments | 17 tweets | 25 linkedin
satelliteRipple completes XRP Lockup
9830 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
9224 views comments | 17 tweets | 36 linkedin
Brits flock to digital-only banksBrits flock to digital-only banks
7349 views 11 comments | 11 tweets | 15 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
6704 views comments | 19 tweets | 20 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job