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Information Ledgers on R3 Corda – Commodities Trade & Logistics PoC

CordaCon Tokyo 2018

7th March 2018

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Distributed Ledger Technology Research @ TCS BFS

Overview

Demonstrable Use Cases and POCs in Banking and Financial services

Experiments / Partnerships with multiple technology platforms

Participating in various standards initiatives across the globe

250+ demos/discussions with more than 100 financial institutions

25+ demonstrable PoCs/Pilots

Payments

- Global Payments

- Domestic Payments

- Intra-group Payments

Securities

- Security Issuance

- DVP Settlement

- Corporate Action

- Securities Trading

Trade Finance

- Documentary Collections

- Smart Contracts (L/C, etc.)

- Invoice Registry

Digital Time Stamp

- Intra-group / Inter-bank KYC

- Centralized KYC

- Reference Data

Joint PoCs / Pilots

Key focus area of research is to enable our customers to realize the business benefits by moving the technology to production

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Use Cases for Capital Markets

Smart

Financial Assets

• Issued, serviced & transacted on distributed ledger

• Private Markets, Syndicated Loans, Receivables

• Commodity Contracts

• Fixed income, equity, derivatives

Financial Asset Servicing

• Trusted and verifiable C/A announcements

• Voluntary action processing

• Proxy Voting

• SSIs, Reference Data

• Tax Handling

Security Financing

• Trading and processing of products like Repo, Security Lending

• Collateral management and margin workflow

Investment Management

• Illiquid Securities Trading

• Improved funds distribution and transfer agency

• Optimize fund accounting information flows

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R3 Corda - Experience

Global SI Partnership with R3

Strong alignment with Corda principle and relevance to banking industry

Mapping several use cases to R3 Corda platform

Developed multiple PoCs for customers using R3 platform

In-house training program developed

Trained over 100 associates in Corda platform

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Information Ledgers on R3 Corda

Key requirements Corda Platform Support

Permissioned Ledgers; Controlled Onboarding of parties

Doorman Service.

Information shared with parties only on need-to-know basis

Key principle of R3 Corda

Business data and attachments (not just hashes) need to be exchanged without compromising privacy

Supports peer-to-peer exchange of information

Non-repudiation and consistency of information across nodes

Digital signatures, Notary and Smart Contracts

Flat Information Flows Design of State Objects

Scalability; No performance degradation when more parties are added to the network

Only parties involved in the transaction flow are processing the transaction; Processing time is independent of the number of nodes in the network

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Commodities Trade & Logistics – PoC - Scope

DLT based information sharing

platform for Banks, Trading houses,

Shipping companies and third party

agents

Sponsor will govern the members

and define the policies of the DLT

network

Data visibility based on role of the

parties involved in the trade

Broadly represent all the key

features required in information

ledger use cases

• Smart Contracts• Enhanced data privacy – No

transaction info stored in any node of unrelated parties

• Immutability of information

• Non repudiation, audit trail • Near real-time information

exchange• Replace system to system

integration

Information Ledgers Platform

Sponsor Members Management Client On-boarding Network Management Notary services

Inspection Agent Inspection Details

Shipping co. Quantity

Oil Trading Co. Trades

Propose Negotiate Affirm

Movement

Banks Finance

Key Features

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Commodities Trade & Logistics – Information Ledger Use Case

ABC Corp

XYZCorp

1a

INDCorp

1b

Movement Agreement (Loading)

USPLogistics

Agent-discharge(Inspection)

2 (logistics)

4 (create

movement)

5 (update details)

Agent-loading (Inspection)

6 (confirm quantity)

7 ( update details)

LogisticsAgreement

TradeAgreement -2

Loadingprocess

Movement Agreement (Discharge)

TradeAgreement -18 (update delivery info)

3 (update Shipping info)

Discharge process

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