Digital Asset smart-contract language to be used to standardize derivatives trading

Blockchain company Digital Asset is working to boost adoption of a derivatives-management tool developed by the International Swaps and Derivatives Association (ISDA), ISDA announced in a press release. ISDA's Common Domain Model (CDM) is said to facilitate automation of the complex process of scheduling derivatives payment, "applying date adjustments, before calculating day-count fractions and interest amounts."

Digital Asset is building a simplified code library that will allow developers to implement the CDM using Digital Asset’s contract language, DAML, which has been open-sourced since April 4. In short, the CDM is now available in DAML to encourage developers in the derivatives space to implement the model.


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According to ISDA, “The ISDA CDM is the first industry solution to tackle the lack of standard conventions in how derivatives trade events and processes are represented.” The model was created to serve as a blueprint for "events that occur throughout the derivatives lifecycle.”

“The ISDA CDM establishes a common set of representations for events and processes that can be used by everyone, improving efficiency and facilitating greater automation,” said Ian Sloyan, ISDA’s Director, Market Infrastructure and Technology. "We’re pleased to work with Digital Asset to help implementation of this important standard."