DTCC begins testing of blockchain for credit derivatives platform with 15 global banks

The test is the latest step by the DTCC to roll out blockchain technology to the US market.

By Joe Parsons

DTCC has begun advanced testing of a new blockchain-based platform for its credit derivatives Trade Information Warehouse with 15 global banks.

In this new testing phase, the banks involved will conduct end-to-end structure user acceptance tests, leveraging simulate use cases and test data validating the interaction between systems, firms and other key market infrastructures.

Upon completion, DTCC expects to move to an “open” testing phase by the end of the year.

“The transformation of DTCC’s Trade Information Warehouse using distributed ledger and cloud technology…, is truly a ground-breaking effort pushing the boundaries of technology use in the industry,” said Chris Childs, CEO, DTCC DerivSERV.

The new platform will utilise a consortium of technology developed by IBM, Axoni and R3, that will provide a golden record for bilateral credit derivatives, performing lifecycle events, payment calculations and settlement.

It will also include cleared derivatives positions from ICE, LCH, and the Japanese Securities Clearing Corporation (JSCC).

“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,” said Lee Braine, investment bank, chief technology officer, Barclays.

The test is the latest step by the DTCC to roll out blockchain technology to the US market.

Earlier this month, it successfully proved it can process an entire day of trading volume in the US market, equal to more than 100 million trades per day, using distributed ledger technology (DLT).

The project showed that DLT is capable of supporting average daily trading volumes at peak rates, totalling 115,000,000 trades daily, or 6,300 trades per second for five continuous hours.