DTCC enters test phase on blockchain project for credit derivatives

IBM is leading the initiative by providing programme management, DLT expertise and integration services. Axoni provides the distributed ledger infrastructure and smart contract applications built on the AxCore blockchain protocol, with R3 acting as a solution advisor

The Depository Trust & Clearing Corporation (DTCC) has moved to the testing phase of a project to re-platform its credit derivatives Trade Information Warehouse (TIW) on distributed ledger technology and cloud.

Fifteen banks are conducting user acceptance tests, leveraging simulated use cases and test data and validating the interaction between systems, firms and other key market infrastructure providers, including MarkitSERV and its new platform for credit, TradeServ. UK-based Barclays is among the banks taking part, while the other 14 were not named.

Upon successful completion, DTCC expects to move to an “open” testing phase by the end of the year, bringing in other market participants and service providers. This is anticipated to be completed by Q1 2019 with go live scheduled thereafter.

“The transformation of TIW using distributed ledger and cloud technology, along with the modernisation of MarkitSERV’s confirmation system, is truly a groundbreaking effort pushing the boundaries of technology use in the industry,” says Chris Childs, CEO of DTCC DerivSERV.

“We are proud to be collaborating with a number of the world’s leading banks, MarkitSERV and all our partners on this exciting initiative to revolutionise the derivative industry’s credit market infrastructure. We look forward to launching the service next year.”

“We are pleased to be working with DTCC, our partners and colleagues on this exciting project to bring distributed ledger technology to life in a demonstrable way that will enhance efficiencies and lower costs and risks for the industry,” adds Lee Braine from the Chief Technology Office at Barclays.

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