Deutsche Börse Launches Digital Post-Trade Platform
Posted by Colin Lambert. Last updated: October 7, 2021
Deutsche Börse says it plans to launch a regulatory compliant, fully digital post-trade platform called D7, anchored in the recently introduced German digital securities law framework.
The new cloud-backed and DLT-ready D7 platform will enable market participants to digitise their financial products with continuing access to both existing central and distributed infrastructures and markets, the exchange group says, thus paving the way for same-day-issuance and paperless, automated straight-through processing for the entire value chain of issuance, custody, settlement, payment and asset servicing for digital securities.
As of mid-2022, over 80 per cent of German securities will be digitisable via D7, fostering digitisation of the German and European financial markets, Deutsche Börse says, adding D7 will complement the group’s established “7 Market Technology” infrastructure portfolio.
The exchange group has joined forces with several global and German financial institutions to create a market-ready digital infrastructure, including BNP Paribas, Citi, DekaBank, Deutsche Bank, dwpbank, DZ Bank, Goldman Sachs, Raiffeisen Bank International and Vontobel. The D7 platform is being developed in collaboration with technology partners Digital Asset and Microsoft, as well as R3 and VMware.
It will kick off with the creation of a digital central register in November 2021, before in mis-2022 D7 will support same day issuance and paperless STP. In 2022-24 Deutsche Börse, says distributed network and DLT capabilities will be built out.
“With D7, we’re providing the financial community with a next generation digital securities post-trade platform to unlock the potential of truly digital and decentralised finance,” says Stephan Leithner, member of the executive board of Deutsche Börse, responsible for pre- and post-trading. “It’s time not only to digitise single processes; it’s time to reinvent post-trading altogether for a stronger, more sustainable and digital future of securities markets.”
Christoph Böhm, CIO/COO and member of the executive board of Deutsche Börse, adds, “D7 reflects our strategic ambitions and the clear focus we put on fostering innovation and new technologies. We are creating the next generation of future-proof financial infrastructure for the digital era, delivering cutting-edge technology and services, and paving the way for the transformation towards digital markets for our industry.”