Digital ledger secures trading integrity

A highly-manual, paper-dependent, trading and reconciliation process was causing the accumulation of a large number of daily transaction liquidity breaks, which had been cited by federal regulators and risked a billion dollar cost impact. The lack of a robust trade audit and reconciliation process to reduce liquidity breaks and operating costs led the bank to seek an immutable system that could record and unify financial practices and be expanded to other transaction areas.

Iris' solution comprised a production-ready, configurable platform using microservices and blockchain-based digital ledger architecture. It employed Smart Contracts coded with requisite business rules to facilitate front office trade booking and trade reconciliation processes. RPA was utilized to automate data mapping and testing of transactions. Preventive controls were enabled by recording intra-company transactions at their initiation using uniform booking practices, and consequently guaranteeing the term of the trade. A multi-layered infrastructure was created to support real-time, batch streaming of differing file formats. The UX was enriched through Interactive UI and automated workflows.

Iris successfully introduced a global intra-company distributed ledger and trade reconciliation system that did not exist before. With self-executing contracts matching both sides of transactions prior to feeding downstream systems, the platform ensures complete integrity at the source and reduces time and cost for all transactions. The solution also achieved:

• 30% fewer liquidity breaks
• 70% improvement in operational efficiency due to the use of RPA
• 60% reduction in business-rules configuration time, due to the smart contracts