Based on the success from 2018, we got invited to engage in DerivHack 2019 by setting up for the contestants a framework with a post-trade application on Corda and implementing the ISDA Common Domain Model for Securities.
Two months of preparation and development for the two-day event organised by R3, Barclays, ISDA.
Event
- Objectives: Our main goal was to ‘uplift’ the base CorDapp from DerivHack 2018 that was developed by R3 and fully support the DerivHack 2019.
- Services: Corda development, Integration with ISDA CDM and Rosetta, DevOps support.
- Results: Our implementation of Corda and CDM platform helped teams win in the 2 out of 3 locations (Singapore and London).
- Year: 2019
The Challenge
- The primary goal was synching up with the new CDM model changes, add on ‘observer node’, and a central party default flows, upgrade the core application to Corda 4 (the latest release at that time), and expand asset class from IRS Derivatives to Securities.
- We successfully merged two worlds - Corda, the distributed ledger technology of which INDUSTRIA is one of the leading European providers, and ISDA Common Domain Model (CDM) - the blueprint for how derivatives are traded and managed across the trade lifecycle. It strives towards a golden source of data through enabling consistent hierarchical representation across trades, portfolios and events, providing enhanced risk management and trade processing capabilities.
- Both CDM and Corda are living products, and one of the major challenges that we have experienced was to synch their latest versions. Additionally, they both have a different representation of the lifecycle for the post-trade flow.
- We were also challenged by the constant international communication between our offices in London and Sofia plus participants from R3, Barclays, ISDA and Regnosys from Singapore, New York and London.
The Solution
Based on Corda, we provided a technology platform for a central repository that stores trade data, life cycle events with associated states. Our team also added new services (e.g. smart contracts to automate events) while Barclays provided CDM based transaction data, event models, and process lineage for securities. Our job was to ensure a smooth and frictionless experience during the hackathon for the Corda teams.
Key Takeaways
- Corda DLT is well suited for the creation of derivatives applications to run transactions across each other without compromising privacy and confidentiality.
- INDUSTRIA is the right consultancy and development team to accelerate the adoption path.
- The utilization of the DLT (Distributed Ledger Technology) could save the financial sector $2.5 billion a year.
- Multiple non-financial industries can also benefit from the DerivHack hackathon.
