TECHNOLOGY

DTCC partners with IBM for post-trade project

DTCC will work with IBM and other partners to produce a DLT offering for derivatives post-trade lifecycle events.

By Paul Walsh paul.walsh@strategic-i.com January 09, 2017 1:10 PM GMT

The Depository Trust & Clearing Corporation (DTCC) has selected IBM, in partnership with Axoni and R3, to provide a distributed ledger technology (DLT) framework to drive further improvements in derivatives post-trade lifecycle events.

The firms will work collaboratively to re-platform DTCC’s trade information warehouse (TIW) with the aim of developing a DLT offering for post-trade processing based on current TIW capabilities and interfaces with technology providers and market participants.

The resulting offering aims to streamline derivatives processing across the industry by eliminating the need for disjointed and redundant processing capabilities as well as reconciliation costs.

Additional input for the project has also come from Barclays, Citi, Credit Suisse, Deutsche Bank, J.P. Morgan and UBS.

Development for the DLT offering is set to start this month with a targeted go-live data of early 2018. 

“IBM, Axoni and R3 offer valued DLT expertise as well as a strong commitment to the Hyperledger community and industry standards,” said Chris Childs, CEO of DTCC Deriv/SERV.

“We are pleased that they have chosen to leverage their collective expertise and collaborate with us on this initiative, which will allow us to build the best solution for the marketplace while minimising cost to the industry and expediting our speed to market.”

Bridget Van Kralingen, senior vice president at IBM Industry Platforms, said, "As one of the largest and most ground breaking distributed ledger projects to date in the financial services industry, DTCC together with its member banks are reimagining the credit derivatives process.

“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 ground breaking opportunity."