EXTENT-2019: Opening Keynote

Opening Keynote

Robert Palatnick
Managing Director and Chief Technology Architect, DTCC
Chairman of the Governing Board, Hyperledger

EXTENT Conference 2019
17 September 2019, London

Can Financial Markets Infrastructures Innovate?
Robert Palatnick, Managing Director & Chief Technology Architect, DTCC - The Depository Trust & Clearing Corporation and Chairman of the Governing Board, Hyperledger giving a keynote talk at EXTENT-2019.

Watch this video to follow the innovation journey of DTCC, from legacy systems to spearheading the next generation of market infrastructure and capability:
https://youtu.be/hIoZcKrl9MQ

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Transcript

1. DTCC Public (White)
   DTCC External (White)
   Can
   Financial Markets Infrastructure
   INNOVATE?
   Robert Palatnick
   Chief Technology Architect
   DTCC
   

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2. DTCC Public (White)
   DTCC External (White)
   

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3. DTCC Public (White)
   DTCC External (White)
   OUR REGULATORS
   

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4. DTCC Public (White)
   DTCC External (White)
   Hypothesis:
   • H
   0
   : Financial Industry infrastructures cannot innovate
   

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5. DTCC Public (White)
   DTCC External (White)
   Consolidation
   Automated Scale
   Functionality
   Cost
   Client Experience
   Competitive Differentiation
   Cyber Threats
   IT Strategy
   Business Drivers
   Secure
   Service Oriented
   Resilient
   Fast Time to
   Market
   Revenue
   External
   Disintermediation
   Regulations
   Changing Demographics
   Being replaced by an “app”
   What drives innovation?
   

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6. DTCC Public (White)
   DTCC External (White)
   DTCC approach to innovation
   In 7 Slides
   

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7. DTCC Public (White)
   DTCC External (White)
   1. Do no harm
   Innovation must align with mission
   DTCC Mission Statement: To deliver the world's most resilient, secure,
   and efficient post-trade infrastructure for our clients
   

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8. DTCC Public (White)
   DTCC External (White)
   2. Organize with Purpose
   Design an innovation program
   • Define goals
   • Define business drivers and/or targets
   • Define process (lightweight!)
   • Define success criteria and metrics
   

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9. DTCC Public (White)
   DTCC External (White)
   3. Create a culture of innovation
   Embed innovation into the daily life and fabric
   • Hackathons (trying and failing is ok)
   • Gamification
   • Innovation Days
   • Embrace open source
   • Socialize
   

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10. DTCC Public (White)
    DTCC External (White)
    4. Expand the toolbox
    Add diversity to the perspective, skills and tools
    • Cloud
    • Lowdev – sandbox for developers
    • AI/ML
    • DLT
    • Girls who Code
    • Embrace open source
    

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11. DTCC Public (White)
    DTCC External (White)
    5. Align motivations
    Adjust incentives, remove corporate blockers
    • Provide dedicated funding and resources
    • Prioritize innovation goals
    • Celebrate success
    • Where appropriate, fail fast is success
    • Either fix, or skip, IT Allocation penalties
    

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12. DTCC Public (White)
    DTCC External (White)
    6. Quality still matters
    Engage control functions in the early stages
    • Innovation does not lower requirements
    • Security and Automation are prerequisites
    • Enhance resiliency with Cloud architectures and Chaos testing
    • Our client is the industry and its regulators
    

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13. DTCC Public (White)
    DTCC External (White)
    7. Rinse, Repeat
    Run innovation as a real program
    • Manage innovation program
    • Establish and keep milestone dates for review
    • Re-align to business and technology strategies
    • Innovation takes perseverance
    

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14. DTCC Public (White)
    DTCC External (White)
    A few Examples of
    Innovation@DTCC
    

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15. DTCC Public (White)
    DTCC External (White)
    Innovation@DTCC: Enterprise Test Engineering:
    • Full Stack Automation
    • API Testing built into DevSecOps Delivery Pipeline
    • Build Infrastructure validation into pipeline as quality gate
    • Leverage AI & ML for test effectiveness and efficiency
    • Test Data Management
    • Collaboration tools, Chat Bot to knowledgebase API
    

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16. DTCC Public (White)
    DTCC External (White)
    Innovation@DTCC: Thought Leadership for the Industry
    

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17. DTCC Public (White)
    DTCC External (White)
    Quantum
    Computing
    Distributed
    Ledgers
    Artificial
    Intelligence
    Big Data
    Analytics
    Enterprise &
    Data Security
    ▪ Hardware
    ▪ Software
    ▪ Private
    ▪ Public
    ▪ Open Source
    ▪ Smart Contracts
    ▪ Key Mgmt.
    ▪ Machine
    Learning
    ▪ Deep Learning
    ▪ Predictive APIs
    ▪ NLP / Deep NN
    ▪ Data Collection
    ▪ Data Science
    ▪ Visualization
    ▪ Cyber Security
    ▪ Biometrics
    Cloud
    Computing
    ▪ Private
    ▪ Public
    Crypto Assets
    ▪ Crypto currency
    ▪ ICO
    ▪ Tokenization
    ▪ Stablecoins
    ▪ Wallets
    Robotics
    ▪ Workforce
    Automation
    ▪ Chatbots
    ▪ Digital Assist
    ACOE Cloud Council CISO
    DTCC Organizational Alignment as Fintech Matures
    Office of FinTech Strategy
    Application Programming Interface (API) Economy
    EDAS
    Developing
    Nascent Mature
    Innovation@DTCC: Office of Fintech Strategy
    • Through research and experimentation, develops a fintech strategy for the organization
    

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18. DTCC Public (White)
    DTCC External (White)
    Revised Hypothesis:
    • H
    A
    : Financial Industry infrastructures cannot innovate
    are
    ing
    

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19. DTCC Public (White)
    DTCC External (White)
    Thank You
    

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