R3, Synechron to build DLT-based KYC solution

nnnSynopsy Synechron, a consulting firm, is working with enterprise software vendor R3 to provide KYC solutions based on distributed ledger technology (DLT). It is reported that the solution will be developed using R3’s financial-grade DLT tool Corda and is known as one of the largest DLT projects of the year, and now the project has been supported by 12 global banks. At the same time, IHS Markit also plans to provide new services related to the MiFID II trading reporting rules, London collateral and margin manager CloudMargin also reached an agreement with DTCC-Euroclear Global Collateral to connect to its MTU to achieve collateral processing and phased processes automation.n
nnTranslation: Clovern
nTwelve banks support the Synechron-R3 projectn
nSynechron, a consulting firm, works with enterprise software vendor R3 to provide a solution for your customer (KYC) solution based on distributed ledger technology (DLT), which has also been supported by 12 global banks.n
nAccording to its senior management, the KYC solution is said to be one of the largest DLT projects of the year and will be developed using R3’s financial-grade DLT tool Corda.n
nThe 12 banks that supported the LEIA 2 project were not confirmed, but the two suppliers said the 12 banks were from four continents.n
nAccording to its executives, Synechron and R3 started the project in July and planned to “quickly set the project objectives and business needs with three months to determine the roadmap and develop functional prototypes on top of the Corda platform. When the project is nearing its end, Synechron will showcase the solution at its Financial Innovation Lab (Synechron). “n
nThe project is designed to address issues such as data collection, data validation, customer experience, and data privacy, which are the most important issues in the bank KYC system.n
nThe initial release of the project press release wrote:n
nn”The inherent characteristics of DLT enable it to address KYC’s proven trusted data without worrying about the risk of data being tampered with or forged, and the technology can also implement autonomous distribution models that allow data owners and companies to control their identity data Distribution.”n
nIHS Markit plans to provide new services related to the MiFID II transaction reporting rulesn
nInformation, Analysis and Solution Providers IHS Markit plans to provide services to companies that comply with MiFID II’s RTS 18 regulations, which require companies to “publicly report their top 5 place of business in accordance with their asset classes.”n
nIts senior management said:n
nn”Compliance with RTS 18 may be a burden for investment companies because they have to create up to four documents, including equity, and each of the categories of all 22 asset classes covered by the provision Multiple types of debt instruments, OTC [OTC] derivatives, structured products, and emissions credits. In each asset category, the transaction is made based on the type of customer, the type of order, and the report published on the public website “n
nnAnd the vendor’s cloud-based solution allows the investment company to outsource the critical classification process required by its compliance.n
nn”Using a proprietary computing engine designed for RTS 18, this service will classify transactions according to the regulations and produce the data into tables and publish reports on public websites. The solution will also be able to provide detailed analysis as needed, And publish it through scheduled reports. “n
nCloudMargin connects to Global Collateral’s MTUn
nLondon-based collateral and Margin Transit Utility (MTU) for DTCC-Euroclear Global Collateral, which is based on network-based collateral and margin management, CloudMargin.n
nAccording to the supplier, its MTU product provides automation for the margin and collateral processing and billing processes of the trader and the buyer’s company and simplifies the process. The purpose of this solution is to obtain settlement instructions, speed up processing speed, improve visibility and optimize collateral management processes.n
nThe new MTU service will help the end user “to simplify and optimize the collateral management process by making use of the processing of the call calculation to settle the collateral.”n
nOverall, the agreement will extend CloudMargin’s “billing capacity and enable users to access the MTU from the cloud, enabling the automation of the entire collateral lifecycle.”n
nAccording to the two suppliers said:n
nn”Through this partnership, both users log in to CloudMargin to access all of the features of the MTU, including the automatic sending of settlement instructions to their administrator and the settlement instructions issued in the ALERT database that collectively stores DTCC. Users will be automatically sent to the MTU directly CloudMargin’s day-to-day settlement status information. The complete automation of this collateral lifecycle reduces manual contact points, ensures data accuracy and creates greater transparency in collateral processing processes. “n
nnThis agreement also shows that CloudMargin is the first supplier to join the Global Collateral Partner Program.n
nCloudMargin product management person in charge Simon Millington said in a statement:n
nn”We have attracted the attention of our customers and potential customers, especially in this environment, the demand for the issuance of daily additional margin has caused the urgent need for technical solutions, customers are also in urgent need of a contact Of the supplier community. “n
nnIt is reported that CloudMargin connected MTU this feature is expected to be put into use in the fourth quarter of this year.n
nGlobal Collateral is a joint venture between Euroclear and the depository and clearing house (DTCC).n

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