Real-Time Synchronised Settlement Demo

This repository contains a demo implementation of Real-Time Synchronised Settlement, as proposed in our submission to the ISO 20022 Hackathon hosted by the BIS Innovation Hub and SWIFT.

The demo simulates an incoming stream of PvP settlement requests in the form of ISO 20022 Foreign Exchange Trade Instruction (fxtr.014) messages and atomically settles them via mock ISO 20022 communication with the relevant liquidity pool (e.g. a central bank) to reserve the necessary liquidity from the delivery agents before instructing the actual payments.

View our solution at atomicwire.io/hackathon:

Contents

• Running the demo
• How it works
• Running in an IDE
• License

Running the demo

Note: Java 11 or Java 17 is required to run the demo.

There are two built-in options for running the demo locally.

For a simple demonstration, simulating at a rate of 1 settlement request per second and with message tracing enabled, run:

$ ./gradlew :run

And to run the simulation at the maximum rate with message tracing disabled, run:

$ ./gradlew :runUnlimited

On Windows, substitute ./gradlew.bat as the command.

How it Works

This demo is implemented as a stream processing application using Apache Flink, a high- performance and high-scale framework for developing streaming applications with consistency guarantees on the JVM. Please see the Apache Flink documentation for an introduction to its concepts.

Our demo application is implemented five stages, which are wired together in the application entrypoint, AtomicSettlement.

• Map the incoming logical ISO 20022 messages to their conceptual representation, then split out both Payment Obligations that constitute the transaction
  • See MapToAtomicSettlementContext
  • See SplitPaymentObligations
• Collect the Payment Obligations by currency and delivery agent, send a liquidity reservation to the relevant liquidity pool, and await the response
  • See ReserveLiquidity
• Join the liquidity reservations back to the original transaction, then split out the Payment Obligations again
  • See JoinLiquidityReservations
  • See SplitPaymentObligations
• Instruct the payment for each leg independently and await the response
  • See SettlePaymentObligation
• Join the payment confirmations and emit the logical message indicating its success
  • See JoinPaymentConfirmations

Additionally, there are a handful of other packages containing supporting code:

• context contains the data classes used to move data throughout the application
• generator contains code to simulate the incoming settlement requests
• iso20022.logical contains mock representations of the mock ISO 20022 logical messages used by the application
• iso20022.conceptual contains mock representations of the mock ISO 20022 conceptual layer entities used by the application
• iso20022.bridge contains code for deriving ISO 20022 conceptual entities from logical messages

Running in an IDE

To run in an IDE of your choice, you must install the Lombok plugin and enable annotation processing.

License

Copyright (c) 2023 Atomic Wire Technology Limited

All rights reserved.

Licensed under the Apache License, Version 2.0, found in the LICENSE file in the root directory of this repository.