A Distributed Ledger Technology approach to Direct Custody and Clearing (“DCC”) creates an opportunity for Global Custodians to reduce the costs and risks associated with operating and providing local custody and clearing services. The application shows the direct asset control process by demonstrating the streamlined lifecycle of a trade from submitting a Receive/Delivery Instruction to settlement of assets. Role-based visibility of asset ownership information is a key feature of the application. Assets are tagged with labels that govern the visibility of asset data between participants.
- Global Custodian has authority to approve Settlement Instructions for Global Investor trades, and trigger its release to the local CSD through the DCC Local Custodian
- Asset locking and unlocking for settlement
- Mocked Swift 543 settlement instruction and Swift 547 settlement confirmation messages generated