The trial, which took place in February and March 2024, marked a significant milestone in the evolution of post-trade processing for uncleared over-the-counter (OTC) derivatives.

The participating banks leveraged Fragmos Chain’s cutting-edge platform to match and confirm a variety of complex equity and rates derivatives trades, including sophisticated multi-leg strategies and basket swaps, seamlessly integrated with comprehensive legal terms. Remarkably, the platform enabled the confirmation of trades within an average of 6 minutes—a process that traditionally could take hours or even days.

One of the standout features of the trial was the platform’s ability to facilitate real-time collaboration. Leveraging R3 Corda’s Distributed Ledger Technology (DLT) along with specific functionalities designed by Fragmos Chain, the platform demonstrated unparalleled efficiency and user-friendliness. Moreover, it was the adoption of the Common Domain Model (CDM), initiated by the ISDA, that decisively resolved the longstanding issue of interoperability between disparate booking systems. Fragmos Chain is proud to be the only CDM-native platform, showcasing our commitment to innovation and standardization in the industry.

Throughout the trial, participants extensively explored and documented various aspects such as collaboration tools, advanced user interface capabilities, the matching process, and the platform’s use for buy-side firms. These insights will be invaluable as we move towards the go-live phase of the platform.

Participants praised the platform’s ease of use and effectiveness in handling even the most complex trades and events. "Fragmos Chain platform is easy to use and very effective for matching trades and events, even the complex ones", noted a bank’s user, highlighting the platform’s potential to revolutionize OTC derivatives processing by enhancing efficiency and reducing operational burdens.

Daniel Ivanier, Fragmos Chain’s CEO, said: “The successful trial illustrates how our platform can deliver significant efficiencies through automation, digitization, and a marked reduction in costs and risks. Our team is deeply proud of this achievement and eager to continue driving efficiency and innovation in the financial sector.”

Furthermore, participants convene in a Banks’ Forum to collaboratively shape the future of derivatives post-trade, ensuring a collective effort towards improvement and innovation.