The Depository Trust & Clearing Corporation (DTCC) today announced the successful completion of a proof-of-concept to better manage the netting process for US treasury and agency repurchase agreement (repo) transactions leveraging distributed ledger technology (DLT).
Working with Digital Asset, a developer of DLT solutions for financial institutions, the two companies have demonstrated for the first time the successful netting of “start” leg repo transactions with prior end-of-day net securities obligations in the DTCC environment.
With Phase One now complete, DTCC and Digital Asset say they have progressed to Phase Two where they will form a Stakeholder Working Group comprised of leading market participants active in the $3 trillion per day US repo and related transaction market to collect independent feedback and ensure the solution is aligned with industry needs.
Phase Two will also determine whether the solution meets the performance and integration needs of DTCC’s technology environment while allowing for integration with member firms. Phase Two is expected to be completed by June 2017 at which time DTCC will determine whether to move ahead with the development phase of the effort.