Claims:WE CLAIM:
1. A method for validation of instrument reference data, the method comprising:
receiving, by a computing node, raw instrument reference data from a plurality of financial entities, wherein each of the plurality of financial entities and the computing node are part of a blockchain network, and wherein the blockchain network comprises a plurality of computing nodes comprising the computing node;
validating, by the computing node, the raw instrument reference data based on a smart contract system installed in the computing node, wherein the smart contract system executes a plurality of data rules on the raw instrument reference data;
determining in real-time, by the computing node, whether the raw instrument reference data comprises at least one discrepancy, based on application of the plurality of data rules on the raw instrument reference data;
receiving, by the computing node, corrected raw instrument reference data contemporaneous to determining that the raw instrument reference data comprises at least one discrepancy, from one or more of the plurality of financial entities; and
consolidating instrument reference data received from each of the plurality of financial entities to generate validated instrument reference data, wherein the validated instrument reference data comprises at least one of original or corrected raw instrument reference data.
2. The method of claim 1 further comprising sharing the validated instrument reference data with at least one regulatory computing node in the blockchain network.
3. The method of claim 2, wherein one or more of the at least one regulatory computing nodes are master control nodes in the blockchain network.
4. The method of claim 1 further comprising storing the validated instrument reference data in a reference data system database, wherein the reference data system database serves as the public distributed ledger database.
5. The method of claim 1, wherein validating comprises accessing, by the smart contract system, data provided by at least one data validation entity in the blockchain network.
6. The method of claim 1, wherein the plurality of data rules in the smart contract system comprises at least one of file validation rules, content validation rules, missing report checking rules, and missing records checking rules.
7. The method of claim 1, wherein the plurality of financial entities comprises at least one of trading venues and system internalizers.
8. The method of claim 1 further comprising propagating result of validating the raw instrument reference data in the blockchain network.
9. The method of claim 8 further comprising rejecting the validated raw instrument reference data, when the validated raw instrument reference data fails consensus in the blockchain network.
10. A method for reporting transaction reports, the method comprising:
receiving, by a computing node, transaction reports from a plurality of financial entities, wherein each of the plurality of financial entities and the computing node are part of a blockchain network, and wherein the blockchain network comprises a plurality of computing nodes comprising the computing node;
validating, by the computing node, the transaction reports based on a smart contract system installed in the computing node, wherein the smart contract system executes a plurality of report rules on the transaction reports based on validated instrument reference data stored in a database;
determining in real-time, by the computing node, whether the transaction reports comprises at least one discrepancy, based on application of the plurality of report rules on the transaction reports;
receiving, by the computing node, corrected transaction reports contemporaneous to determining that the transaction reports comprise at least one discrepancy, from one or more of the plurality of financial entities; and
consolidating, by the computing node, transaction reports received from each of the plurality of financial entities to generate validated transaction reports, wherein the validated transaction reports comprise at least one of original or corrected transaction reports.
11. The method of claim 10 further comprising sharing the validated transactions reports with at least one regulatory computing node in the blockchain network.
12. The method of claim 11, wherein one or more of the at least one regulatory computing node are master control nodes in the blockchain network.
13. The method of claim 10 further comprising storing the validated transaction reports in a public distribute ledger database that is a part of the blockchain network.
14. The method of claim 10, wherein the plurality of validation rules in the smart contract system comprises at least one of file validation rules and content validation rules.
15. The method of claim 10 further comprising propagating result of validating the transaction reports in the blockchain network.
16. The method of claim 10, wherein the database is a reference data system database present in a separate blockchain network, and wherein the reference data System database database serves as the public distributed ledger database in the separate blockchain network.
17. A smart contract system for validation of instrument reference data, the smart contract system comprising:
a processor; and
a memory communicatively coupled to the processor and having processor instructions stored thereon, causing the processor, on execution to:
receive raw instrument reference data from a plurality of financial entities, wherein each of the plurality of financial entities and the computing node are part of a blockchain network, and wherein the blockchain network comprises a plurality of computing nodes comprising the computing node;
validate the raw instrument reference data by executing a plurality of data rules on the raw instrument reference data;
determine in real-time, whether the raw instrument reference data comprises at least one discrepancy, based on application of the plurality of data rules on the raw instrument reference data;
receive corrected raw instrument reference data contemporaneous to determining that the raw instrument reference data comprises at least one discrepancy, from one or more of the plurality of financial entities; and
consolidate instrument reference data received from each of the plurality of financial entities to generate validated instrument reference data, wherein the validated instrument reference data comprises at least one of original or corrected raw instrument reference data.
18. The smart contract system of claim 17, wherein the processor instructions further cause the processor to store the validated instrument reference data in a reference data system database, wherein the reference data system database serves as the public distributed ledger database.
19. A smart contract system for reporting transaction reports, the smart contract system comprising:
a processor; and
a memory communicatively coupled to the processor and having processor instructions stored thereon, causing the processor, on execution to:
receive transaction reports from a plurality of financial entities, wherein each of the plurality of financial entities and the computing node are part of a blockchain network, and wherein the blockchain network comprises a plurality of computing nodes comprising the computing node;
validate the transaction reports by executing a plurality of report rules on the transaction reports based on validated instrument reference data stored in a database;
determine in real-time, whether the transaction reports comprise at least one discrepancy, based on application of the plurality of report rules on the transaction reports;
receive corrected transaction reports contemporaneous to determining that the transaction reports comprise at least one discrepancy, from one or more of the plurality of financial entities; and
consolidate transaction reports received from each of the plurality of financial entities to generate validated transaction reports, wherein the validated transaction reports comprise at least one of original or corrected transaction reports.
20. The smart contract system of claim 19, wherein the processor instructions further cause the processor to:
store the validated transaction reports in a public distribute ledger database that is a part of the blockchain network; and
propagate result of validating the transaction reports in the blockchain network.

Dated this 27th day of November, 2017

R Ramya Rao
Of K&S Partners
Agent for the Applicant
, Description:TECHNICAL FIELD

This disclosure relates generally to transaction reporting using blockchain and more particularly to system and method for dual blockchain based validation of instrument reference data and transaction reporting.