Barclays Sponsors Blockchain Hackathon to Discover Derivatives Contracts Processing
British funding financial institution Barclays is sponsoring a hackathon to search out the most effective blockchain resolution to extend the effectivity of derivatives contracts processing, in accordance with an announcement printed August 9. Barclays is partnering with different market majors like Deloitte, the Worldwide Swaps and Derivatives Affiliation (ISDA) and Thomson Reuters for the occasion.
On the two-day DerivHack hackathon, contributors can be given a possibility to implement their concepts and apply the ISDA Frequent Area Mannequin (CDM) to distributed ledger know-how. The ultimate purpose of the occasion is to search out options to make use of instances in post-trade processing of derivatives contracts.
The ISDA CDM gives a typical digital illustration of occasions and processes which can occur in the midst of a derivatives commerce, offered in a machine-readable format. The product is designed to boost consistency and assist interoperability throughout companies and platforms.
Per the announcement, Barclays will lay down difficult use instances to simulate the derivatives market, like an overhaul of derivatives post-trade processing, step-change in effectivity features, in addition to present pattern commerce knowledge within the ISDA CDM to implement them.
Earlier this yr, there have been rumors that Barclays was reviewing the potential for opening a cryptocurrencies buying and selling desk. An nameless supply reportedly stated that the financial institution was assessing whether or not shopper curiosity was adequate to supply crypto buying and selling companies. Later, Barclays’ CEO Jes Staley refuted the rumors, saying:
“Cryptocurrency is an actual problem for us as a result of, on the one hand, there’s the progressive facet of it and wanting to remain within the forefront of know-how’s enchancment in finance… On the opposite facet of it, there’s the potential for cryptocurrencies getting used for actions that the financial institution desires to don’t have any a part of.”
In July, Barclays filed two patent functions referring to the switch of digital forex and blockchain knowledge storage, each printed by the U.S. Patent and Trademark Workplace. The primary patent describes a system of transferring digital forex from payer to recipient that may securely authenticate the identities of each, in addition to validate and file transactions. The opposite pertains to storing and endorsing knowledge and claims referring to particular entities.