The Depository Trust and Clearing Corporation (DTCC) plans
to develop a blockchain-based post-trade framework for
derivatives with tech firms R3, IBM and Axoni starting this
The US-based clearing giant aims to replace the technology
underpinning its Trade Information Warehouse database with a
The database currently automates the record keeping,
lifecycle events, and payment management for more than $11trn
of cleared and bilateral credit derivatives.
Development on the technology is to begin in January and is
expected to go live in early 2018.
"IBM, Axoni and R3 offer valued distributed ledger
technology expertise as well as a strong commitment to the
Hyperledger community and industry standards," Chris Childs,
chief executive officer of DTCC Deriv/SERV, said in a
"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."
According to the DTCC, the new technology should further
streamline, automate and reduce costs for derivatives
processing. The development will be led by computing giant IBM,
infrastructure will be provided by Axoni and R3 in an advisory
The project has been developed with input and guidance from
a number of market participants including Barclays, Citi,
Credit Suisse, Deutsche Bank, JP Morgan, UBS and Wells Fargo,
and infrastructure providers IHS Markit and Intercontinental
The news follows the completion of a proof of concept
for single name credit default swaps on a
blockchain, which the DTCC conducted with Bank of America
Merrill Lynch, Citi, Credit Suisse, JP Morgan and Markit.
According to a survey by consultancy firm Synechron,
developing blockchain-based technology remains as priority for the coming year
, with more
than a third of financial firms concerned about the lack of
expertise in the technology.