Calypso Technology Inc., a leading provider of capital markets and investment management software, and R3, the financial services industry’s largest distributed ledger (DLT) consortium, are developing a DLT application for trade matching confirmations with a group of global financial institutions.
“This is a leap into a new era. Calypso provides a completely integrated experience with the Corda DLT platform where golden copies replace a series of electronic messages, and where technology replaces human intervention and manual reconciliation. Calypso recognizes DLT and Blockchain as new standards of operation efficiency and transparency. We are very pleased to reach this milestone.”
— Tej Sidhu, Chief Technology Officer, Calypso Technology
Connecting to the Calypso Cloud application, R3’s Corda platform was used to carry out trade matching tests in real-time across four time zones. Participants included Westpac Banking Corporation in Sydney, ING in Amsterdam, BBVA in Madrid, Banco de Credito del Peru (BCP) in Lima, and a large investment management firm in US. These institutions each used a node on Corda to enter FX trades, seamlessly from within Calypso, with one another, validate them and confirm matching, leveraging Calypso’s industry-leading post-trade processing capabilities, in real-time.
The project participants will continue working with Calypso and R3 in the next phase of development, moving into a live pilot and subsequent production application.
Tej Sidhu,Chief Technology Officer at Calypso Technology, comments: “This is a leap into a new era. Calypso provides a completely integrated experience with the Corda DLT platform where golden copies replace a series of electronic messages, and where technology replaces human intervention and manual reconciliation. Calypso recognizes DLT and Blockchain as new standards of operation efficiency and transparency. We are very pleased to reach this milestone.”
Todd McDonald, Co-Founder at R3, comments: “Corda is the only DLT platform designed from the ground up to address the specific needs of the financial services industry. This test is a perfect example of its ability to meet banking requirements in areas such as identity, privacy, security and scalability. We look forward to pursuing the next stage of development with Calypso.”
Victor Gamero , FX Trader at BCP, comments: “Beyond the obvious gain that this new matching methodology provides, we were very impressed by the mitigation of operational risks.”
Alicia Pertusa, Head of CIB Digital Strategy at BBVA said, “Disruption in capital markets needs to reach massive adoption. Calypso & R3, as key market players and infrastructure providers, are well positioned to overcome this difficult challenge.”
R3 is leading a consortium with over 80 banks, clearing houses, exchanges, market infrastructure providers, asset managers, central banks, conduct regulators, trade associations, professional services firms and technology companies to develop groundbreaking commercial applications of distributed ledger technology for the financial services industry.
Operating in nine countries from all regions of the world, the R3 team is made up of financial industry veterans, technologists, and new tech entrepreneurs, bringing together expertise from electronic financial markets, cryptography and digital currencies.