In this paper, Aishwarya Nair and Lee Braine from Barclays’ Chief Technology Office explore opportunities for the post-trade industry to standardize and simplify in order to significantly increase efficiency and reduce costs. They start by summarizing relevant industry problems (inconsistent processes, inconsistent data, and duplicated data) and the corresponding potential industry solutions (process standardization, data standardization, and authoritative data stores).
This includes transitioning to the International Swaps and Derivatives Association (ISDA) Common Domain Model (CDM) as a standard set of digital representations for the events and processes throughout the lifecycle of a trade. They then explore how financial market infrastructures could operate authoritative data stores that make CDM business events available to broker-dealers, considering both traditional centralized models and potential decentralized models. For both models, there are many possible adoption scenarios (depending on each broker-dealer’s degree of integration with the authoritative data store and usage of the CDM) and we identify some of the key scenarios.