Execution: buyer and seller enter into a legally binding agreement to transfer securities from the seller to the buyer in exchange for money from the buyer to the seller
Clearing: performing all the necessary steps leading to the settlement, such as posting sufficient margin and recording the Transactions
Settlement: the actual exchange of securities for money, when the securities are titled to the buyer and the money is transferred to the seller
Derivatives Common Domain Model
International Swap Dealers Association Project
Seeks to use Smart Contracts to automate contractual term
Machine readable standard representation of events and actions over the life of a derivative trade
Uses Java and JavaScript object notation
CDM 1.0 includes “new transaction”, “rate reset”, “partial termination”, “allocation”, “novation” and “compression” events