In February the International Swaps and Derivatives Association (ISDA) released version two of its Common Domain Model (CDM) which aims to standardize the coding of derivatives trade events and processes. Today Digital Asset announced that it’s working with ISDA on an open source code library that implements the CDM in Digital Asset’s smart contracting language DAML.
The aim of implementing the CDM across the derivatives sector is to save money, and the savings could be as much as $2.5 billion. Last year Ledger Insights spoke to Lee Braine from the Chief Technology Office at Barclays about ISDA’s new standard. “Across the post-trade derivatives industry, there is infrastructure deployed that is too complex for its current purpose. And the proposal is analogous to pressing a technology ‘reset button’ allowing you to go back and radically simplify the nature of that infrastructure.”
Braine was talking after a Barclays-hosted hackathon for the first version of the CDM, where the best overall solution prizes went to Digital Asset in London and Baton Systems in New York.
“Following our success at the Barclays DerivHack in London last year, we have been working closely with ISDA with the joint goal of standardizing processes across the derivatives industry,” said Kelly Mathieson, Head of Enterprise Solutions at Digital Asset.
“We are very excited to now make this reference implementation available to users via our DAML Software Developer Kit and the Rosetta Portal, enabling financial institutions to be in control of their own data.”
“The ISDA CDM establishes a common set of representations for events and processes that can be used by everyone, improving efficiency and facilitating greater automation,” said Ian Sloyan, Director, Market Infrastructure and Technology, at ISDA. “We’re pleased to work with Digital Asset to help implementation of this important standard.”
The CDM aims to help the industry to agree on standards around processes rather than products. ISDA is the guardian of the Financial products Markup Language (FpML).
The CDM Rosetta portal also includes implementations in Java and JSON. Last year Baton Systems announced that its platform was CDM compliant.