Test Automation for DLT-based Applications in Finance

Test Automation for DLT-based Applications in Finance
Iosif Itkin, co-CEO, Exactpro
Alyona Bulda, VP, Senior QA Project Manager, Exactpro

Hyperledger Member Summit
30 - 31 July 2019, Tokyo

Exactpro specialists have conducted a case study on Test Automation for DLT-based Applications in Finance and shared it at the Hyperledger Member Summit on July 30 in Tokyo. Alyona Bulda, VP, Senior QA Project Manager and Iosif Itkin, co-CEO presented the research.

The presentation focused on the Exactpro team’s experience with automating software testing activities around complex hybrid systems containing both traditional and DLT components. The presentation highlighted the challenges of such a system under test, dwelling on ways to find an optimal design for the test automation framework and developing an approach to open-sourcing such a framework. The presentation particularly addressed the question of different levels of integration of SUT’s architecture developed on Hyperledger Fabric.

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Transcript

1. Confidential
   Build Software to Test Software
   exactpro.com
   Test Automation
   for DLT-based Applications in Finance
   Alyona Bulda, VP, Technology, Exactpro
   Iosif Itkin, co-CEO and co-founder, Exactpro
   

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2. ● Incorporated in 2009 with 10 people, our company has experienced significant growth; now
   employing over 500 specialists.
   ● Member of Hyperledger since January 2019.
   ● A specialist firm focused on functional and non-functional testing of exchanges, clearing houses,
   depositories, banks and other market infrastructures.
   ● We provide software testing services for mission critical technology that underpins global financial
   markets. Our clients are regulated by FCA, Bank of England and their counterparts from other
   countries.
   ● Part of London Stock Exchange Group (LSEG) from May 2015 until January 2018.
   The Exactpro management buyout was successfully completed in January 2018.
   We are headquartered in the UK and have operations in the US, Georgia and Russia.
   Introduction: a few facts about Exactpro
   

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3. We have a global software Quality Assurance client network
   

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4. Typical Requirements for an Exchange System
   Daily capacity - 100+ mln transactions
   Peak rates - 40k+ transactions per second
   Average round-trip latency - <100 microseconds
   Availability - 100%
   3000 trx 2.5 cm <1 mm
   

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5. Trading vs. Post Trade
   

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6. The most challenging type of financial platforms is post-trade systems
   ✓ Clearing and settlement systems
   ✓ Collateral Management systems
   ✓ Risk Management systems
   ✓ Market data systems
   ✓ Payment systems
   ✓ etc.
   

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7. Delivering Large Post-Trade Initiatives: Key Challenges
   Challenges:
   - There is a multitude of components in modern complex post-
   trade infrastructures;
   - Upstream and downstream system dependency;
   - The participant structure is very complex;
   - Trade/Xfer/Position/Account life cycle;
   - The number of Asset Classes may vary;
   - The complexity of the Risk calculation process;
   - Access via a set of API endpoints.
   The challenges and their parameterizations lead to a significant
   number of test scenarios.
   

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8. Delivering Large Post-Trade Initiatives: Technology Transformation
   ⇒ Many financial institutions (including Exactpro customers) invest in DLT;
   ⇒ Traditional platforms undergo transformation;
   ⇒ The changes are significant, so new infrastructures need thorough testing;
   ⇒ New platforms -> new test approaches? New testing tools?
   

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9. ⇒ The same complexity of participants/processes/asset classes;
   ⇒ Hybrid nature: conventional functionality + new business logic involving interactions within a blockchain network;
   ⇒ High diversity of underlying DLT frameworks;
   ⇒ New form of business logic execution - smart contracts.
   A new smart solution is needed: a multifunctional and multicomponent framework
   

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10. Delivering large Post-Trade initiatives: key challenges and innovative QA
    

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11. Case Study: Distributed Ledger Technology in Post-Trade Infrastructure
    E2E scenario for Position update flow
    

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12. Exactpro Test Framework and Test Approach for DLT-based system
    3 steps on the ledger side:
    1st - Initialisation of positions
    2nd - Trade creation and participant notification
    3rd - Positions updates
    Across each and every step the test framework
    provides different methods to validate the
    endpoints, inputs and outputs.
    The actual business flow steps and validation
    check items are transformed into ClearTH
    matrix after execution of which the deviations
    from the expected behaviour can be analysed.
    

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13. //Initial state & SODpositions (set of validations for initial states of positions)
    //Trade registration
    RegisterTradeA BankA registers trade
    GetTradeA1 Bank A tries to get its own trade
    VerifyTradeA1 Verifying that Bank A sees its own trade
    GetNoTradeB Bank A tries to get trade registered by Bank B
    VerifyNoTradeB Verifying that Bank A doesn't see trade registered by Bank B
    RegisterTradeB BankB registers trade
    GetTradeB1 Bank B tries to get its own trade
    VerifyTradeB1 Verifying that Bank B sees its own trade
    GetNoTradeA Bank B tries to get trade registered by Bank A
    VerifyNoTradeA Verifying that Bank B doesn't see trade registered by Bank A
    //CCP changes
    GetBalanceA3 Bank A should have updated balance
    GetBalanceB3 Bank B should have updated balance
    GetTrade_CCP CCP tries to get trade registered by Bank A & Bank B
    VerifyTradeA_CCP Verifying that CCP sees trade registered by Bank A
    VerifyTradeB_CCP Verifying that CCP sees trade registered by Bank B
    GetTradeA2 Getting updated trade of Bank A
    VerifyTradeA2 Verifying that status of trade has been changed
    GetTradeB2 Getting updated trade of Bank B
    VerifyTradeB2 Verifying that status of trade has been changed
    

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14. Matrix structure for the running example
    

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15. Exactpro Test Framework and Test Approach for a DLT-based system (Hyperledger)
    CCP
    Bank B
    Bank A
    Channel C
    Clearing request
    contract
    Clearing
    contract
    

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16. The video begins with a demo of the case study, with the user interface (UI) of a post-trade
    DLT-based platform on the left and the ClearTH framework used on the right. The demo is
    followed by a detailed view of the transactions taken place in test execution in the
    Hyperledger Explorer UI. In conclusion, a test execution report is generated by the ClearTH
    framework for the running example.
    Please follow the link to watch the demo
    

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17. 19 Build Software to Test Software
    Confidential
    exactpro.com
    September 17
    Leadenhall Building,
    London, 2019
    Join us in discussing the newest fintech trends
    and solutions to the challenges in mission-
    critical trading and post trade systems!
    19
    SOFTWARE TESTING AND
    TRADING TECHNOLOGY TRENDS 2019
    

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18. 20 Build Software to Test Software
    exactpro.com
    

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