1. Developments in Distributed Ledger Technology: Derivatives Processing
November 30, 2017
ANDREW P. CROSS
WASHINGTON, D.C.

2. Overview of Today’s Presentation
Introduction to DLT and Blockchain
DLT and Derivatives Processing

3. Introduction to DLT and Blockchain
Enter You Tube Video
Thank You to Laurie Rosini
Laurie Rosini
Associate
Seattle T:

4. DLT and Derivatives Processing: ISDA Whitepapers and DLT-Related Developments
8/3/2017
Smart Contracts and Distributed Ledger – Legal Perspectives
9/19/2017
The Foundations of an Efficient Market Infrastructure
10/16/2017
ISDA Common Domain Model Version 1.0 Design Definition Document
10/18/2017
A Blueprint for the Optimal Future State of Collateral Processing*
10/31/2017
ISDA RFQ for Data Analysis and Production of Digital Artefact for ISDA Common Domain Model
11/30/2017
ISDA Conference on Technology & Standards Unlocking Value in Derivatives Markets *

5. DLT and Derivatives Processing: Major Themes
Challenge: Strained infrastructure that is too costly and inefficient to be sustainable
Self-governed industry solutions preferred over mandated solutions (i.e., regulations)
“Mutualization” of technology and operational processes among financial institutions, end users and regulators
All parties will work from a common, shared DLT platform
Develop standardized data processing (CDM)

6. DLT and Derivatives Processing: Common Domain Model
Product Data Set Will Represent Any Financial Markets Product or Processes
Use Smart Contract Technology to Have Automatable and Enforceable Processes
Run Financial Transactions Over a Distributed Ledger
DLT Will Allow for Common Services in Respect of Financial Transactions
Collateral is specifically mentioned

7. DLT and Derivatives Processing: Collateral
Current State
Expensive, Bespoke, Manual and Inefficient
Future State
Cost-effective, Standardized, Distributed and Efficient
Proposed Initiatives
Digitized CSAs, Central Trade Valuations, Standard Collateral Eligibility Schedules, Centralized Interest Calculation and Matching, and Adoption of Messaging Standards

8. Questions?
ANDREW P. CROSS