JDX, the global financial services firm, announces today that the combined team of JDX, R3 and Xceptor has won the ‘most complete solution’ award and use of early stage Common Domain Model (CDM) in the two day global CDM Hackathon run by Barclays and the International Swaps and Derivatives Association (ISDA). The team won one of the four prizes awarded in London in a global competition in which up to 50 teams participated in London and New York.
The Hackathon’s aim was to create a collaborative environment and bring together key industry players to help test and design a solution that would be CDM-compliant. All the teams worked with the latest version of the new ISDA CDM standard industry product data and event data language and tested it on Distributed Ledger Technology (DLT) against five use cases.
The Hackathon use cases were:
1) setting up counterparty data;
2) representing a new OTC derivative (cleared and uncleared) in CDM on DLT;
3) processing a partial termination, full termination, partial novation and a 3- and 4-way novation;
4) processing a rate reset, and generating coupon cash flows, including then netting of these cash flows and instructing settlement; and
5) reporting the trades from a regulatory reporting perspective.
Stuart McClymont, Managing Director at JDX said: “It was a great event, not only did the ISDA CDM language hold up well throughout the use cases but there was a genuine collaborative environment between all participants to share their experiences and refine the language. Being awarded first place is a tremendous milestone for JDX as it shows how we as a firm have worked together across our service lines to lead the industry from a strategic concept to a technical solution in under 18 months. It will fundamentally transform the OTC derivatives industry post-trade landscape for years to come and puts JDX in pole position to work with industry participants on the journey to roll out the use of this new industry standard data language across their post-trade architecture.”
The results of the combined team impressed the judges by not only showing the importance of having the right technology and the right expertise on DLT, but also by ensuring that the solution was practical, fit for purpose and could be adopted easily by market participants.
Todd McDonald, Co-Founder of R3 said, “The adoption of a CDM will help drive the broad use of smart contracts based upon common industry standards, thereby unleashing the massive benefits of blockchain technology to slash costs and develop new, innovative commercial opportunities. We look forward to continuing our close collaboration with JDX and Xceptor to combine our various skillsets and offer industry leading solutions.”
Andrew Kouloumbrides, CEO, Xceptor said, “In just two days, Xceptor demonstrated its ability to successfully integrate with both a Distributed Ledger Technology and a new data schema. We were able to consume both compliant and non-compliant CDM messages and communicate these to the DLT. This means that, in real-world terms, we are already able to take any type of data format generated by post-trade processes in banks and automatically push it to a DLT environment.”