DTCC and Accenture have published a white paper to elaborate DLT Governance Model (DLT-GM) for operating and maintaining a DLT platform with eight functional areas.
Accenture (Major global professional Services) and The Depository Trust & Clearing Corporation (DTCC), which ventures into market infrastructure for the global financial services industry, published a white paper recently. The White paper proposes a DLT governance model for operating and managing DLT networks with the involved risks during operations.
DLT Model Enclosures:
The Model consists of an 8 pointer detailed description about the tasks and critical functions involved in operation and upkeep of the DLT platform.
It mentions governing majors for the users, which affects connectivity, contractual agreements, transactional finality, and software alterations while using the network.
The model proposed in the paper directs the responsibilities and critical functions in operating and maintaining a DLT platform. It will include a governing function to make decisions that will affect connectivity, activity, contractual settlements, software alterations and transaction finality for a participant over the network.
According to Robert Palatnick, Chief Technology Architect, DTCC,
“Distributed ledger technology, with its built-in consistency, security, and privacy, holds great promise to transform the digital landscape, but DLT’s potential will only be realized with the implementation of a strong and transparent governing model.”
The model elaborates eight functional areas as below:
A) Data Governance: It includes new concepts about participant entitlement, confidentiality models, and also reference data control.
B) Runtime operations: It includes regular implementation of major run book operations like monitoring, reporting, etc.
C) Governance: It provides management of highest risk, error control factors, and strategic decision-making functions for the network users along with four areas of responsibility.
D) Legal and Finance: It addresses many issues, including vendors and various risk factors like patent risk, license risk, etc.
E) Infrastructure: It includes core network management issues and defining of ownership responsibilities for operations.
F) Third-Party Management: It covers supervisory functions assigned to the network.
G) Platform Management: It describes an ecosystem version of the traditional model of application development, designed to support the multilayered DLT platform.
H) Participant Lifecycle: It covers all management aspects of a new onboard member and his interactions in the network.
The model is said to be the critical component of DTCC’s Trade Information Warehouse (TIW) enterprise to switch from the current system to DLT leveraging cloud.