ISDA CDM Common Domain Model Next generation digital

ISDA CDM (Common Domain Model) Next generation digital data & processing standard • A higher order financial trade data and contract model • Advantages over Fp. ML/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 Event Lineage Event Effect Building blocks to represent Business Process Inputs Outputs From To CDM Hash …. . Pointer to other dependent events ex: Amendments, Observations References to new contracts Primitives (ex: Execution, Allocation, Transfer ) References to existing contracts New Contracts …. …. ….

CDM & digital trade life cycle Order / DRFQ Advantages over FIX/Fp. ML/ISO 20022 …. …. trade life cycle Transfer …. …. Settlement Digital Assets …. …. Execution …. …. v Business Events fully expressed v Built-in Lineage v Cause and Effects v Capture entire life cycle v Json format v Single standard for multiple assets Allocation …. …. Session Netting CDM event lineage

Sample CDM WG collaborative test conducted on DLT (New Trade) Bank A Pending New Trade Requ Match est Trade Match Smart Contract (calculating agent) Bank A Node Executed Trade R(A) R(B) Vault Novation, Clearing Life Cycle Vault S ch at M e Trade Match Trad est w e u Smart Contract N Req Bank B Node R(A) R(B) S Vault Regulator Bank B Executed Trade Match Smart Contract S Bank C Node Pending New Trade Novation, Clearing Others CCPs, FCMs, Prime Brokers DTCC, Custodians, CSDs, Buy Side, Administrators … Life Cycle Corda DLT Network Termination, Expiration New Trade Match Request, New Trade Match Accepted / Rejected Request Sent, Request Received, Request Notify Termination, Expiration