ICAP has announced that its Post Trade Risk and Information (PTRI) division has successfully completed a proof of technology test case for a distributed ledger using blockchain technology.
The proof of technology, completed last month, has the potential to significantly transform post trade operations, while complying with new market practices within the post-crisis regulatory environment. Axoni, a New York-based tech firm, provided blockchain infrastructure for the trial.
“Partnering with ICAP was an easy choice,” said Greg Schvey, CEO of Axoni. “There’s no shortage of demand for distributed ledger projects. ICAP’s thoughtful consideration of where this technology can be most valuable, its ambitious deployment objectives, and market-leading client reach offer a high probability of success when combined with Axoni’s advanced blockchain infrastructure.”
The test leveraged the multi asset messaging and matching Harmony network to create a private, p2p, distributed ledger network using smart contracts. The PTRI division imported matched messages from Harmony and converted them in real time to blockchain-based smart contracts. The smart contracts were then distributed to nine representative participant nodes on the blockchain network, where trades were permissioned for additional services such as valuation, compression and reporting.
“In successfully completing a proof of technology test, ICAP has demonstrated one of the first real world applications of distributed ledger technology that has the ability to significantly transform the post trade landscape”, said Jenny Knott, CEO of ICAP’s Post Trade Risk and Information Services division.
The UK-based interdealer broker said that over the coming months, the PTRI business will discuss with participants how they can access the “new golden data source” and start work to realise technology savings in disparate systems, while ensuring regulatory compliance.
ICAP plc is a leading markets operator and provider of post trade risk mitigation and information services. It matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks.
