ISDA and Digital Asset Launch CDM Clearing Pilot Using DAML
ISDA expands the capabilities of its Common Domain Model (CDM) for the clearing of over-the-counter derivatives using DAML
October 6, 2020
Clearing is an essential part of the derivatives landscape and it is extremely important the operational processes are consistent to ensure seamless automation. As a result, ISDA and Digital Asset announced today a pilot implementation of the Common Domain Model (CDM) for the clearing of interest rate derivatives using DAML.
The pilot takes the CDM model for clearing and adds new features for the signing of state transitions, data ownership and privacy elements, which are necessary to put the CDM clearing model into production. Those elements are inherent within DAML as features with native support. The resulting new models will initially exist as complementary artefacts on the CDM portal and may eventually be integrated into the core CDM with those new features included.
ASX and UBS have been providing input to validate additional functionality of the CDM alongside ISDA and Digital Asset.
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ISDA has been working with Digital Asset since early 2018, when the two firms jointly developed an open-source reference code library in DAML to help with the adoption of the CDM. The event specification module was built to simplify and standardize the process of generating lifecycle events defined in the CDM. The concepts found in the event specification module have since been built into the core CDM as native functions.
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