UK banking giant Barclays is sponsoring a hackathon event that will provide opportunity for market participants across the industry to showcase blockchain solutions that will increase the efficiency of derivatives processing.
Called DerivHack, the hackathon event will take place simultaneously in London and New York on September 20-21 at Barclays’ Rise accelerator spaces. The UK banking giant is partnering with other market majors like the International Swaps and Derivatives Association (ISDA), Deloitte and Thomson Reuters for the event.
“Innovation is critical to our industry as it increases competitive advantage and provides meaningful differentiation to companies,” Barclays said. “Emerging technologies, such as blockchain and distributed ledgers, offer an exciting opportunity to overhaul derivatives post-trade processing and achieve step-change in efficiency gains. To fully realize the benefits, industry must address existing fragmentation in data and processing.”
At the two-day event, participants will have the opportunity to apply the ISDA’s Common Domain Model (CDM), a set of process and data standards, using their choice of blockchain technology to solve for representative use cases in post-trade processing. The ISDA’s CDM provides a standard digital representation of events and processes which may happen in the course of a derivatives trade, presented in a machine-readable format. It is designed to enhance consistency and aid interoperability across firms and platforms.
“It’s up to each team to decide what they code on,” said Dr. Lee Braine of the CTO Office at Barclays Investment Bank. “It is a good, and genuinely open, question which will perform the most efficiently. I think the sort of things that will come out of this hackathon will include exactly that.”
Barclays said it will set challenging use cases to simulate the derivatives market and will provide sample trade data in ISDA CDM representation to implement them. A panel of independent judges drawn from the industry, academia and public sector will judge the feasibility and effectiveness of proposed solutions and prizes will be awarded.
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