Next Generation Digital Data and Processing Standard in Financial Trade
ISDA CDM (Common Domain Model) presents a higher-order financial trade data and contract model with advantages over FpML/FIX. It offers fully described business events, data, and processing standards, capturing life cycle events across various products along with participants. The model includes built-in data rules for input validation, tracks cause and effects, records lineages, and provides a strong foundation for digital capital markets. Current product support includes OTC derivatives, Repos, Securities Finance, and Securities (equities and fixed income), with ongoing progress in Margin and Collateral. Anatomy of a CDM event and the digital trade life cycle are outlined, showcasing the benefits over existing standards. A collaborative test conducted on DLT further demonstrates the practical applications of CDM in trade workflows.
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Presentation Transcript
ISDA CDM (Common Domain Model) Next generation digital data & processing standard A higher order financial trade data and contract model Advantages over FpML/FIX : Fully described Business Events, Data and processing standards, lineages Captures life cycle events across multiple products along with actors / participants Built-in data rules to validate input semantics Tracks cause and effects Records lineages (built-in audit trail) Represented in Json Strong foundation for digital capital markets (contracts, DLT) Current product support: OTC derivatives, Repos and Securities Finance, Securities (equities and fixed income) In progress: Margin and Collateral
Anatomy of a CDM Event ( Smart Data for Smart Contracts) Prior Event Header From CDM Hash To .. . . . Pointer to other dependent events ex: Amendments, Observations Event Lineage References to new contracts Event Effect Primitives (ex: Execution, Allocation, Transfer ) Building blocks to represent Business Process References to existing contracts Inputs New Contracts Outputs
CDM & digital trade life cycle Order / DRFQ Advantages over FIX/FpML/ISO 20022 . . Business Events fully expressed Built-in Lineage Cause and Effects Capture entire life cycle Json format Single standard for multiple assets trade life cycle Transfer Execution . . . . Digital Assets Settlement Allocation . . . . CDM event lineage . . Session Netting
Sample CDM WG collaborative test conducted on DLT (New Trade) Bank B Bank A Trade Match Smart Contract (calculating agent) Pending Pending Bank A Node Bank B Node Executed Trade Executed Trade New Trade New Trade R(A) R(B) R(A) R(B) S S Vault Vault Novation, Clearing Novation, Clearing Bank C Node Regulator Others CCPs, FCMs, Prime Brokers DTCC, Custodians, CSDs, Buy Side, Administrators Life Cycle Life Cycle S Vault Corda DLT Network Termination, Expiration Termination, Expiration New Trade Match Request, New Trade Match Accepted / Rejected Request Sent, Request Received, Request Notify
