The Depository Trust & Clearing Corporation (DTCC) advanced its main blockchain project in a test phase with 15 global banks, one of the last steps before taking the tech live.
Announced today, Barclays based in the UK is among the global banks participating in the test, while the other 14 have not been named. Together with them will kick the tires of the DTCC distributed ledger and the cloud-based platform for its Trade Information Warehouse (TIW) credit derivatives.
Upon successful completion, DTCC plans to move to an "open" test phase by the end of the year, he said in a statement. At that time, other market participants and service providers will have the opportunity to test. The tests are expected to be completed by the first quarter of 2019 with the go-live scheduled thereafter.
Building a new platform for TIW is one of the most ambitious existing business blockchain projects because the current system is a key component of the infrastructure for the global financial industry. TIW provides life cycle events processing services for approximately 98% of all credit derivative transactions worldwide, worth $ 11 trillion. The warehouse customer base includes major global derivatives retailers and over 2,500 buy-side companies and other market participants in over 70 countries.
In particular, the DTCC adheres to its starting date of 2019, announced at the May 2018 Consensus.
"We are delighted to be working with DTCC, our partners and colleagues on this exciting project to bring the demonstrably distributed ledger technology to life, which will improve efficiency and reduce costs and risks for industry," he said. Lee Braine of the Investment Bank CTO Office of Barclays, in a statement.
DTCC has adopted an unusual multi-vendor approach when it comes to DLP technology (distributed ledger technology), with program integration and management services, Axoni that creates the DLT and smart contracts functionality on the AxCore and R3 blockchain protocol that acts as a consultant for the solution .
The testing phase also involves other major financial infrastructure providers such as the new TradeServ platform of IHS Markit, which aims to provide options for foreign currency and credit reconfiguration and credit reconfiguration, scheduled to be scheduled for publication in the second quarter of next year.
TIW serves as a golden record for parties involved in credit derivative transactions, life cycle events, payment calculations and settlement.
It keeps track of everything from the initiation of a trade until it expires, including amendments, changes, rescheduled installments, termination and company actions, which must be automated using Axoni's smart contract technology.
In addition, TIW includes positions derived from ICE, Japan Securities Clearing Corporation (JSCC) and CDSClear from LCH SA.
DTCC image via CoinDesk archive.