Digital ledger secures trading integrity

Banking & Financial Services

Digital ledger secures trading integrity

Automated, expandable distributed ledger system resolves trade reconciliation and compliance issues and lowers costs for global bank.

Client

Global bank's trading operations

Goal

Resolve trading transaction breaks and related regulatory issues through expandable intra-company digital ledger system

Tools and technologies

Hyperledger Fabric 1.4/2.2, Java 8, Go Language 1.8, Kafka, Node JS, Microservices, OpenShift, Dockers, Kubernetes

BUSINESS CHALLENGE

A highly-manual, paper-dependent, trading and reconciliation process was causing the accumulation of a large number of daily transaction liquidity breaks, which had been cited by federal regulators and risked a billion dollar cost impact. The lack of a robust trade audit and reconciliation process to reduce liquidity breaks and operating costs led the bank to seek an immutable system that could record and unify financial practices and be expanded to other transaction areas.

SOLUTION

Iris' solution comprised a production-ready, configurable platform using microservices and blockchain-based digital ledger architecture. It employed Smart Contracts coded with requisite business rules to facilitate front office trade booking and trade reconciliation processes. RPA was utilized to automate data mapping and testing of transactions. Preventive controls were enabled by recording intra-company transactions at their initiation using uniform booking practices, and consequently guaranteeing the term of the trade. A multi-layered infrastructure was created to support real-time, batch streaming of differing file formats. The UX was enriched through Interactive UI and automated workflows.

OUTCOMES

Iris successfully introduced a global intra-company distributed ledger and trade reconciliation system that did not exist before. With self-executing contracts matching both sides of transactions prior to feeding downstream systems, the platform ensures complete integrity at the source and reduces time and cost for all transactions. The solution also achieved:

  • 30% fewer liquidity breaks
  • 70% improvement in operational efficiency due to the use of RPA
  • 60% reduction in business-rules configuration time, due to the smart contracts

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