the Depository Trust and Clearing Corporation (DTCC) has made one of the most significant moves on the tech industry by advancing its primary blockchain project to the testing phase. Announced on November 6th, 15 banks have been involved in the project, including the UK based Barclays bank. Although the other 14 global financial institutions were not publicly mentioned, they will work together to kick the tires of the DTCCs cloud-based and distributed ledger platform
Open Testing Phase
Upon successful project completion, DTCC plans move to the open testing phase this year, as per the announcement. At that time, several service providers and market participants will hopefully get the opportunity to test. DTCC intends to end the testing proves by the end of 2019, so that go-live exercises can be scheduled after that.
Creating a new TIW platform for TIW is among the top ambitions blockchain projects that exist today since the current system is still critical in the financial industry. For this reasons, TIW will provide a lifecycle event to process its services for approximately 98% of the global derivative transactions, worth $11 trillion. The customer’s base warehouse includes derivative dealers as well as 2500 and more buy-side companies. Other participants from more than 70 countries are also included.
Notably, DTCC is working towards its 2019 expected go-live date which was announced in May 2018 at a consensus.
“We are happy to team up and work with DTC, and our colleagues, as well as partners, have embraced this exciting project. The distributed ledger technology will increase efficiency and accuracy, and also lower the costs and the risks of operating businesses,” said Lee Braine in the Barclays statement.
unlike the other multi-vendor approaches, DTCC has decided to work in another way of the distributed ledger technology (DLT). IBM will provide the program integration and management services, while Axoni building will be used as the solution advisor.
the testing phase will also involve pulling other key financial infrastructures providers including the HIS new TradeServe platform. The platform delivers other foreign options for exchanges as well as re-architecture credit confirmations a matching.
TIW Derivative Trades
TIW acts a golden record to all the parties’ involved in the derivative trades, payment calculations, settlement and also lifecycle events. It facilitates the tracking of trade activities right from the start to maturity, including modifications, amendments, termination, rests even corporate actions which are all enabled using he Axoni smart contract technology.TIW also includes the cleared derivative positions from the Japan securities clearing corporation(JSCC), ICE and the LCH SAs CDSClear.
the standardized nature of the entire process flows and also data models make the derivatives perfect for the distributed ledger technology. As bolstered by the shared governance and standards, the DLT based system IW service will help the industry to report and process information to the regulators using the same records of data. It will also enhance the communication and storage systems to assist in better allocation and management.