Video by FINOS via YouTube
Daniel Ivanier (CEO of Delta Capita Fragmos) explores how the FINOS Common Domain Model (CDM) is evolving beyond Digital Regulatory Reporting (DRR) to digitize and automate operational post-trade workflows for OTC derivatives. Drawing on 20+ years of banking experience, Daniel demonstrates how the ARIS platform leverages CDM to eliminate paper-based OTC confirmations, automate complex portfolio swap rebalancing, standardize ISDA legal terms, and combine deterministic trade data with AI models for instant discrepancy resolution.
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🕒 Timestamps:
0:00 Introduction: Daniel Ivanier & Delta Capita Fragmos
0:57 Why CDM? A Shared Language Beyond Technical Standards
3:50 Chapter 1 vs. Chapter 2: From DRR to Operational Workflows
4:26 The Crisis in OTC Post-Trade: Emails, PDFs, and 6-Year Confirmations
6:15 Modeling Complex Products: Rates, Equity Swaps, and Exotics
9:23 Automating Lifecycle Events: TR ACE & Portfolio Swap Rebalancing
10:27 Standardizing Legal Terms: ISDA Definitions & Bespoke Clauses
13:39 3 Concrete Operational Outcomes: Matching, Paperless Confirmations & Lifecycle
17:06 Lowering the Barrier to Entry: External Mapping vs. Internal Re-architecture
20:26 Safe AI in Finance: Combining Deterministic CDM Data with LLM Recommendations
📊 The Problem: Fragmented OTC Post-Trade & High-Risk AI HallucinationsOperational Friction in Derivatives: OTC post-trade processing remains severely fragmented and inefficient, relying on manual email exchanges, static PDFs, spreadsheets, and manual reconciliations. Complex trade confirmations can take weeks or even years to finalize, leading to costly counterparty disputes during lifecycle events. The Danger of Unbounded AI on Unstructured Data: Feeding un-standardized term sheets or PDFs directly into raw LLMs yields a ~20% error rate. In $100M+ capital markets transactions, hallucinated trade terms or calculation mistakes pose unacceptable financial and legal risks.
🏗️ The Solution: The ARIS Platform & Layered CDM Mapping
Daniel Ivanier presents a practical blueprint for operationalizing the FINOS Common Domain Model (CDM) across derivatives post-trade: Beyond Vanilla Trade Representation: Extends CDM structures across complex asset classes (Interest Rate Swaps, Equity Swaps, Barrier/Autocall Exotics), dynamic lifecycle events (daily TR ACE / portfolio swap rebalancings), and standardized ISDA legal terms (e.g., calculation agent designations and bespoke clauses). 3 Core Post-Trade Outcomes:Automated Trade Matching Engine: Identifies economic and legal discrepancies across counterparty data points automatically. Paperless, Legally Binding Confirmations: Enforces paperless confirmations aligned with ISDA definitions under a validated legal framework. Lifecycle Automation: Drives downstream cash flow calculations, settlements, and DRR regulatory reporting off a single source of truth. Mapping Layer for Easy Adoption: Allows institutions to benefit from CDM externally without performing immediate, multi-year internal core system rewrites. Deterministic AI Synergy: Combines deterministic CDM data structures with LLMs. The underlying CDM trade state provides guaranteed truth, while AI models analyze historical counterparty matching patterns to deliver instant, real-time discrepancy resolution recommendations.
⚙️ Why This Matters for Financial EngineeringSingle Source of Truth:
Eliminates data breaks across booking, trade matching, confirmation, settlement, and regulatory reporting pipelines. Pragmatic Adoption Pathway: Financial institutions can map internal trading/booking schemas directly to CDM through external translation layers, immediately unlocking industry-wide interoperability.
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