Modern Market Infrastructure One platform for Conventional, Natively Digital and Tokenised Assets and Cash 1
MACH | The Vision Broker Dealers
1. One post-trade “Sell Side” ledger, all assets, globally Eq
2. Conventional, Digital and Tokenised assets on one ledger
Client Lifecycle Management
3. Atomic settlement using many digital cash-on-chain forms
Funding & Liquidity
4. Slice and dice ledger by legal role (UBO, Beneficial Owner)
Fi
FX
SRP
Buy Side Derivs
Other
Digital Identity Real time trade/positions
Execution
5. Provider of real-time Funding and Liquidity data
Issuance
Asset Creation, Issuance, Primary Allocation & Tokenisation
Post-Trade
Traded, Settled and Actual real-time positions
6. Enabler of digital asset new revenues i.
New products (e.g. Pan European issuance)
ii.
Fractionalisation accessing new liquidity pools
iii.
Data commercialisation
Issuer & Position Data Commercialisation
7. Larger, more mobile collateral pools working 24/7 8. OPEX reduction of ~50%
Securities Services
Collateral Management and Financing Asset Servicing (inc Proxy Voting)
Liquidity Provision (Settlement Bank)
Asset Safekeeping
Buy Side Custody Services
Settlement Optimisation
9. Change spend avoidance of ~50% 10. User-driven product governance & commercial model
CSD All asset classes Global
11. Independently operated & regulated Key:
MACH product vision
Settlement Finality Investor CSD
Issuer CSD
MACH One Real Time Sell Side Ledger
Out of scope 2
Central Counterparty (CCP)
Central Bank Money & RTGS
Buy Side Repo and Collateral Services
I N T E R O P
Other Legacy Ledgers Private permissioned and Public Blockchains Digital Cash: Deposit Tokens, Stablecoin,
CBDC
Current MACH clients and use cases
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Region
Client
Use Cases
Status
Europe
Montis
Conventional, Digital and Tokenised assets FIAT Cash (T2) Corporate Bonds, MMFs Full lifecycle processing
Delivered to production
Europe
Confidential
Central Bank money via CBDC
Delivered to production
UAE
Central Bank UAE
Digital Securities Depository Native Digital and Tokenised assets Full lifecycle FIAT Cash via RTGS
In deployment
Australia
MACHClear
Tokenised Equities Full lifecycle processing FIAT Cash and CBDC
In deployment
UK
Confidential (within DSS)
Conventional, Digital and Tokenised assets FIAT (CoBM) and Deposit Tokens Repos and Money Markets Full lifecycle processing
Subject to contract
UK
Confidential (GSIB, 60 global entities)
Conventional, Digital and Tokenised assets Consolidated Custody ledger Collateral Tokenisation
Delivered to production
MACH | The technology components Mach technology comprises six core components that target the cost savings, capital reductions and new revenue opportunities of digital assets Market View 1. Tokenised assets are $87bn today. BCG
2. There are $584bn of digital assets under
3. Existing EU law and regulation supports digital assets and digital market infrastructures
1. DLT enables a more resilient infrastructure
Issue, transfer & custody of all assets
estimates they will rise to $11 trillion by 2030
custody (Statista, Oct 2024)
Technology View
Assign
2. Increased cyber protection, data protection and permissioning
Pass
Tokenise
De-centralised digital passports
Mint, transfer lock & burn
4. Settlement efficiency is falling whilst costs are
issuance, settlement, collateral and safekeeping
6. DLT has matured and platforms are now being delivered into production 7. DLT offers solutions for collateral mobilisation, real-time settlement and fractionalisation that positively impact cost, revenue and capital 4
chain of custody (UBO, Beneficial Owner etc) 4. Improved latency of information, regulatory oversight and corporate governance for issues
rising 5. End investors remain sensitive to costs for
3. New ledger structure increases transparency of
(SRDll)
Bridge
Optimise
Links legacy and DLT ledgers via API, ISO and DLT nodes
Multi-lateral netting of settlements
Ledger Conventional, digital and tokenised assets on one ledger
5. Structure compliant with PFMI Principles 6. Interoperable ecosystem – MACH supports ISO
messaging, API, public and private DLT networks
The DSD Vision Context
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MACH | The DSD product Mach DSD is the first product based on the Mach technology components. It has combined five of the six technology components: Assign Issue, transfer & custody of all assets
Pass
Tokenise
De-centralised digital passports
Mint, transfer lock & burn
Bridge
Optimise
Links legacy and DLT ledgers via API, ISO and DLT nodes
Multi-lateral netting of settlements
Ledger Conventional, digital and tokenised assets on one ledger
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MACH | The DSD Vision
New Revenue Streams •
Digital Assets: Enables new digital product offerings utilising existing law and regulation
•
Fractionalisation: Creates new markets, enhances participation and liquidity
•
Tokenisation: Streamlines the issuance, transfer and flexible use of assets
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Reduced Costs •
Settlement: Reduced post-trade fees
•
Issuance: Faster time-to-market, fewer intermediaries
•
Operations: Increased automation and accuracy. Reduced effort and FTE
Reduced Capital Requirements •
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Atomic Settlement: Facilitates instant settlement, liberating capital held against operational and counterparty risks
01 DSD Vision
Interoperability •
Existing Tech: Integrates with SWIFT and Target2. Uses API
•
New Tech: Interoperates with private and public DLTs
•
Controlled Migrations: Supports conventional, tokenised, and digital assets, ensuring a risk managed transition to new technologies
•
Single Ledger: Supports conventional, tokenised and digital assets on one ledger
•
Data Lineage: Maintains high throughput and low latency, ensuring efficient data processing and tracking, supporting Data Management
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04
06
Security & Reg Compliance •
Cryptographic Security: The MACH ledger uses elliptic-curve cryptography to generate key pairs using 256-bit keys.
•
Regulatory Compliance and Reporting: Adheres to regulatory standards and provides comprehensive reporting
05 Cloud •
Platform Scalability and Resilience: Tested to 10,000 operations per second. System resilience through multiple availability zones
•
Infrastructure Costs: Utilises cloud infrastructure, minimising physical infrastructure and maintenance costs
MACH | DSD Overview Issuance • All security transactions match against the total number of securities in circulation (i.e. match positions in circulation to investors’ accounts) • Ensure intra-day + EOD integrity
An overview of end-to-end DSD functionality
• Match upon receipt of a successfully validated delivery or receipt instruction and facilitate the process to compare trade details of the sell and buy • Position all securities have sufficient cash assigned for settlement to take place • Settlement: facilitate the end-to-end lifecycle of a transaction, using T2S for all settlement, in Central Bank Money (CeBM):
DSD
• •
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• In case of delivery/receive versus payment transactions, the corresponding cash amount must be transferred as well between the participants • Generate cash instructions • Process confirmations
Custody • Maintain the overall position of all instruments issued in the market of origin • Maintain the overall account structures to finalise settlement
Account Management Maintain and administrate all financial instruments in a book entry system Open and maintain accounts for DSD participants (as well as end-investors) on which balances are recorded in books and records for all securities transactions Manage corporate actions and income events related to securities deposited in books and provide the necessary tax services
• Capture instructions • Lifecycle management: identify instruction type and define end to end lifecycle + process • Validate instructions: check that data is complete, accurate and in the correct format • Enrich instructions as required
Cash Management
Securities Settlement
•
Instruction Management
Asset Servicing Data Management •
•
Ensure that all data related to securities transactions, holdings, and settlements are accurate, consistent, and up-to-date across all systems and processes. Implement robust security measures to protect sensitive financial data and ensures compliance with regulatory requirements and industry standards.
• • • • •
Comprehensive new issue services Timely and accurate income and redemption payments Proactive tax services for both relief at source and reclaims Efficient corporate action notification and processing Lifecycle messaging for income and corporate actions
Business Architecture and Message Flows Background
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MACH DSD | Business Architecture
API’s provide read/write functionality and connect external systems to MACH.
See MACH Blockchain slide for more information.
MACH features its own proprietary private permissioned blockchain that is built for scalability and performance and conducts frequent reconciliation checks against any external DLTs. The MACH chain can also store metadata required for regulatory and legal adherence
Assign
DLTs
See LMS slide for more information.
APIs
LMS
Tokenise
Assign ensures tokens are assigned the correct information to ensure regulatory adherence and enable token management
Reach out to book a demo of the platform GUI and functionality.
See Workflow Engine slide for more information.
GUI
Workflow
Bridge
Ledger
The GUI provides the ability to monitor LMS, see errors and platform procedures, enforce 4-eyes checks and other admin activities such as user and participant management.
The workflow engine drives the settlement process and ensures adherence with regulatory and legal requirements.
Bridge provides interoperability between DLTs to perform DLT operations
Ledger provides a single source of truth for traditional, tokenised and native digital assets. It provides the foundation for future-proof process handling.
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The Liquidity Management System (LMS) ensures alignment with cash systems and enables DvP settlement.
See MACH Bridge section for more information.
SWIFT
Errors
SWIFT messages are sent to participants, including MT54’s, MT56’s, MT53’s, MT900, camt.054, pain.998.
Notifications inform users of errors. The MACH platform includes exceptions management screens and a ‘Camunda cockpit’ to view and manage errors on the platform.
See Apache Kafka slide for more information on connectivity between system components.
Tokenise facilitates the tokenisation of traditional assets and can create native digital assets on private and public networks.
Optimise Optimise facilitates settlement finality, including netting of transactions.
Message Flows | Settlement Transaction (EU)
KEY:
Settlement Bank
▪ Send and receive settlement and event messages via: ▪ SWIFT network ▪ API ▪ SFTP ▪ ISO20022 standard only
▪ Settlement instructions recorded in wallet stored on DSD Participant account ▪ DSD checks wallet to ensure there is sufficient securities/cash to settle the transaction ▪ Settlement and event status messages update transaction status in participant’s wallet ▪ On settlement, wallet balances updated to reflect settlement of securities and cash
(DCP or ICP)
Issuer/Investor DSD
Issuer DSDs
SWIFT Gateway
Transaction Management
DC Connect Node allows participants to access data and manage transactions removing the need to utilise external message networks to send / receive transaction/event messages
MT540X ISO20022
Image result for Target2 securities
ICP Mode
ICP Mode
Montis
ICP Mode
Proxy Voting Service Provider enables STP proxy voting via its proprietary GUI or API
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MT540X ISO20022
Liquidity Management System
MT940/950 ISO20022
DSD GUI
▪ T2S receive and match settlement instructions and report status to DSD ▪ On Intended Settlement Date T2S transmits settlement status messages (confirmation / fail) to DSD ▪ All messages sent via SWIFT using ISO20022 standard
MT56X ISO20022
ICP Mode
PROXY VOTING GUI
Status/notification/advice messages
Optimisation Engine
MT54X ISO20022
DCP Mode
Participant wallet
Pain.998 ISO20022
Message Management
DSD Service Users
Instruction messages
T2 cash settlement instruction and confirmation messages to facilitate risk management for Settlement Banks
Outbound / Inbound MT message types Swift Status / Confirmations / Cash settlement
MT202/210 ISO20022
DC Connect Node
MT540X ISO20022
MT940/950 Statements
DCP Mode Other
Swift Instruct & status – MT103X ISO 20022
MT56X ISO20022
ICP Mode
Proxy Voting Service Provider
Asset Service Provider
DSD
DSD
MT56X ISO20022 Asset Servicing Provider sends and receives corporate event messages via SWIFT using ISO20022 standard
DCP Mode
Message Flows | Asset Servicing PRE-EVENT 1
Issuer DSD sends corporate event notification (MT564) to DSD
2
DSD identifies all accounts with holdings in underlying security
3
DSD sends corporate event notification (MT564) to DSD participants
4
DSD participants identify all clients holding position and send corporate event notification (MT 564) to clients
Example asset servicing flow for a mandatory event 11
DSD Participant Cash Correspondent Bank
MT5202 MT2310
MT5202 MT2310
9
Issuer DSD Participant Cash Correspondent Bank
DSD Cash Correspondent Bank
MT5202
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POST-EVENT (SECURITIES)
4
MT564
DSD Participants
Message Management
Clients
Issuer DSDs
Issuer/Investor DSD
Issuer A
MT566
Issuer B MT566
456
Issuer C 8
MT566
2
MT564
MT566
1
SWIFT Gateway
MT564
Clients
MT564
Corporate Event Workflow
Transaction Management
DEF
MT564
123
Issuer DSD sends corporate event confirmation (MT566) to DSD
6
DSD updates all holdings in all accounts n participants’ wallet
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DSD sends corporate event confirmation (MT566) to participants
8
Participants update custody records and send corporate event confirmation to clients
3 MT566
ABC
5
6
Issuer A
MT564
MT566
Issuer B
5
Issuer C
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POST-EVENT (CASH) NB: Cash and securities fractions will be handled in accordance with DSD rule books.
DC Connect Node KEY:
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Participant wallet
Participant Holdings at individual account level
Cash entitlement settlement messages Instruction messages Status/notification/advice messages
Participant Accounts at jurisdictional level
Proxy Voting Service Provider
Asset Service Provider
DSD
DSD
9
For cash events issuer DSD pays cash entitlement to DSD
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DSD pays cash entitlement to participants at omnibus account level
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Participants distribute cash to underlying clients
Technology Architecture Overview
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MACH DSD | Technology Architecture Participants & Administrators
GUI
Trading Venue
SWIFT Bureau
Participant Systems
Trading Venue API
SWIFT Connector
MACH Smart Connect
Unified API
•
Exception Management & Fails Reports
Workflow Engine
Manages business workflows, Liquidity Management System, and coordinates business processes
•
•
View and fix workflow state
Workflow Administration
Member credentials, permissions, accounts, and other info
• Securities & Cash • Data Store
Member Data Store
Securities definitions and other ref data. Securities holdings cache for faster queries
Participant Wallet
•
• • Workflow Data Store
Workflow reference, state, and error data
Reporting Chain (MACH sub-chain)
•
Single bridge between application and all DLTs
•
Locking information and address translation tables
Bridge Bridge Data Store
KMS
• 14
KMS used for encrypting and decrypting private keys
Stand-alone tool
Ethereum
Hedera
Algorand
MACH Chain
MACH Block Explorer
•
View real-time block creations and block information. Comparable to Etherscan for Ethereum
A participant wallet is a logical construct that enables each participant to view their security holdings and transaction history across DLTs. Each participant can use this concept to view security holdings, transaction history and eventually other information – for example, funding details.
MACH Platform | User Permissions Dynamic Set-up
Current Platform Configuration Type
External
Internal
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Role
Access Capabilities
Custodians
Receive allocations, manage accounts, approve/reject trades, view asset/ LMS ledger
IPA (Issuing/Paying Agent)
Initiate issuance, view entitlements, confirm distributions, receive MT messages, view asset/ LMS ledger
Settlement Bank
Manage LMA balances, adjust CMA caps, view cash ledger, receive liquidity notifications
Administrator
Manage users, reset passwords, enforce 2FA, approve deletions, configure platform settings
Issuance Team
Create securities, initiate primary issuance, allocate assets, approve/reject actions
Settlement Team
Manage and monitor settlements and the DSD technical account, view asset/ LMS ledger
Asset Servicing Team
Manage corporate actions (coupon/redemption), approve distributions, view audit trails
DSDM (Client Services & Data Management)
Create/update participants, manage accounts, configure thresholds, unlink currencies
For the purposes of the demo, a Global Admin user is used for internal MACH DSD user roles to improve demo flow.
MACH Workflow Engine Business logic and rules
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MACH DSD | Workflow Engine MACH’s custom workflow engine provides a tool to perform complex business processing on the MACH platform What is the Workflow Engine: The workflow engine is a processing and automation layer that enables users of MACH technology to design, test and execute complex transaction processes directly on to assets held within platform Unique Selling Point: ✓ The workflow engine allows users with business domain knowledge to map out and execute business processes. This enables workflows to be created by those who fully understand the business process. Power of Attorney
Product Overview ✓ Workflows are created, stored and executed from within the platform
✓ The workflow engine has a dependency-based execution flow meaning that steps will execute at the earliest point possible once all dependent steps have completed ✓ Workflows interact with functionality e.g. Reports / Messaging
Transaction process mapped / Workflow created
Workflow verified
Parameters supplied
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✓
DvP Model 1
✓
Asset Servicing
✓
SFD 1/2/3
✓
Issuance
✓
Redemption
Execution
✓ The workflow engine can execute long running workflows capable of facilitating a wide array of asset servicing processes ✓ Executed workflows can be monitored through the GUI allowing tracking of processing progress and key flow milestones
Templates
User interaction
DLT / Blockchain updates
✓ Used when the workflow needs permission to execute actions on behalf of an asset owner/holder ✓ Allows the workflow to operate an address, with the explicit permission of the address holder
✓ Time and activity restricted to limit possible actions
Liquidity Management System (LMS) Alignment with CeBM / CoBM systems to manage cash
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Liquidity Management System (LMS) | Features MACH has built the foundational functionality to enable efficient reserve asset and risk management. MACH’s Liquidity Management System (LMS) currently enables Settlement Bank users to manage credit risk for Custodians. To facilitate this management of credit risk, a representation of central bank money is held off-chain in a connected append-only database ledger. This representation of cash could be replaced with digital tokens or central bank digital currencies if required. MACH’s LMS currently facilitates: Settlement Banks Cash Ledger
LMA
SWIFT Messages
Transaction Matching
Validation Checks
Processing of SWIFT messages such as DvP and FOP instructions.
Confirmations of matched buy and sell orders.
Ensure credit limits are not breached through any given transaction.
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02
03
Record of txns
Custodians Record of txns
Cash Ledger
Asset Ledger
CMA
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Settlement
Transaction Processing
Alignment with CeBM / CoBM systems
Near real-time transfer of assets on-chain and cash off-chain,
Updating credit limits once transaction has settled.
Ensure credit limits are consistent across ledgers and systems.
04
05
06
LMA = Liquidity Memorandum Account CMA = Cash Memorandum Account
LMS | High Level Processes High-level iteration:
Alignment with RTGS
Settlement Banks set their Liquidity Memorandum Account (LMA) balance(s) as well as Cash Memorandum Account (CMA) Cap amendments (if any) for their participants.
Each custodian’s transaction tallies up against their CMA Cap. A transaction cannot execute if it breaches the CMA cap. Transaction Processing, Transaction Matching, Validation Checks, Settlement
Alignment with RTGS
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Settlement Bank A (NCB) Cash Ledger
LMA
Record of txns
LMA’s are managed by Settlement banks via CeBM / CoBM systems, instructing standing orders of liquidity transfers via pain.998 messages.
Each transaction is reconciled against the respective Settlement Bank’s record of transactions. Custodian A
Each transaction tallies up against the respective Settlement Bank’s LMA. A transaction cannot execute if it breaches the LMA.
Record of txns
Transactions are settled and counterparties are notified via UI and SWIFT messages.
CMA Cap
Cash Ledger
Custodian B Asset Ledger
Record of txns
CMA Cap
Cash Ledger
Asset Ledger
Approaches to the Cash Leg The cash leg has two possible funding models PRE-FUNDED: Cash positioned before settlement Liquidity Management System START OF DAY Settlement banks fund their liquidity memorandum accounts by funding message, setting the cash position the platform will work against. INTRA-DAY
Every instruction is checked against the available balance and the cap. Alerts at 80% and 100%; instructions beyond it are queued or rejected.
PER-TRANSACTION: Cash moved at the point of settlement Hash time-locked contracts Both legs lock against the same hash Claiming one leg discloses the secret Nested timeouts reverse both Linkage is enforced by the protocol
END OF DAY
Balances are swept and reconciled for the next business day. A residual balance carries forward rather than halting processing.
Enforced before the fact
No unfunded settlement
What it needs is cash that can hold a contract. A conventional RTGS cannot run one — which is why synchronisation exists at all: an operator has to earmark and release on its behalf.
Two account tiers
Where this can go next:
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RTGS in central bank money
Cash tokens on another ledger
Cash tokens on the DASD chain
Collateral in place of cash
CURRENT DESIGN
FUTURE PLATFORM CAPABILITY, VIA HTLC
FUTURE PLATFORM CAPABILITY
FOUNDATION IN PLACE
Kafka Information streaming
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MACH DSD | Apache Kafka Apache Kafka enables real-time data processing, allowing businesses to make quick, data-driven decisions. Its scalability ensures that systems can grow with the business, handling increased data loads efficiently. Kafka’s reliability and durability minimise data loss, ensuring continuous operation and data integrity. Additionally, its versatility in integrating with various systems streamlines data pipelines, reducing complexity and operational costs.
How Kafka is used:
Key Benefits: Network Communication
RESTful API Provides a RESTful API over HTTPS, using JSON for lightweight messaging.
Unlike most DLT networks that use raw TCP, MACH uses Kafka for node communication, ensuring scalable and resilient event processing.
Scalability Kafka’s distributed design allows horizontal scaling, handling increasing loads efficiently.
Processing Efficiency By offloading tasks like transaction sequencing from the consensus process, Kafka improves overall system performance.
Messaging & Event Streaming
Blockchain Integration
Kafka is used to build real-time data pipelines and streaming applications. It can handle millions of events per secound.
In the DC blockchain network, Kafka is used for transaction sequencing and routing state updates. This approach is faster than traditional consensus methods.
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Energy Efficiency Reduces redundant computation and avoids wasteful consensus methods, leading to lower energy consumption.
MACH Blockchain Immutable single source of truth
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MACH DSD | MACH Blockchain The MACH blockchain is a Distributed Ledger Technology (DLT) platform designed to transform the efficiency, security, and compliance of financial market infrastructures. Key Features include: 1. Resilient and Reliable Node Hosting: a. Distributed Architecture: Nodes are hosted across multiple availability zones, ensuring high availability and fault tolerance. b. Rapid Consensus: Achieve near real-time transaction validation with a consensus process that occurs every 5 seconds. 2. Data Integrity and Security: a. Comprehensive Transaction History: Each validation node maintains the entire transaction history and block state, ensuring data consistency. b. Robust Security Protocols: Transactions undergo rigorous authentication, authorisation, and validation, preventing data manipulation.
3. Advanced Reporting Chain: a. Mirroring and Reconciliation: Mirrors securities holdings and account addresses across the MACH ledger and external DLTs, ensuring high-speed settlement finality and data integrity. b. Metadata Inclusion: Supports address metadata, crucial for external DLTs that lack this capability. c. Periodic Reconciliation: Regular reconciliation workflows maintain alignment between the MACH ledger, external DLTs, and the high-performance securities ledger. 4. Efficient Cash Ledger Management: a. Alignment with T2: The MACH cash ledger is synchronised with T2, the golden source for the cash leg of Delivery versus Payment (DvP) transactions. b. Liquidity and Risk Management: Provides essential information on liquidity and cash memorandum accounts, aiding in credit risk management for settlement banks. 25
The MACH Blockchain is optimised for:
Scalability and Performance ✓ The high-performance cache in the securities ledger ensures efficient data retrieval, reducing the need to query slower DLTs. ✓ Periodic reconciliation ensures data consistency across all ledgers.
Regulatory Compliance ✓ The MACH ledger’s design supports comprehensive audit and regulatory compliance, essential for financial market infrastructures.
Register Services | Integrity of Issue The DASD system has multiple checks and balances to ensure that every transaction is authorised, has been processed successfully, and operational integrity has been maintained. These range from four-eyes checks at key stages of the asset lifecycle – including issuance, allocation, secondary trading, and asset servicing – to periodic reconciliations across the DASD DLT and with external DLTs. Shareable end-of-day reports are produced for each participant, supporting transparency and operational oversight. These include MT535 (statement of holdings), MT536 (statement of transactions), and MT537 (statement of pending transactions).
Integrity of Issuance (Internal)
Integrity of Issuance (External)
Control of Overdrafts
Business Day vs BD-1 Reconciliation
Objective: ✓ Ensure the balance of each issuance account matches the sum of credits in securities accounts.
Objective: ✓ Ensure the balance of each issuance account on the DASD DLT matches the sum of credits in securities accounts across different blockchains.
Objective: ✓ Ensure no securities overdraft occurs on the DASD DLT, except for issuance accounts.
Objective: ✓ Compare the balance of each securities account at the end of each day with the previous day’s balance plus net transactions.
Output: ✓ Record account balances and an indicator of whether the balances match.
Output: ✓ Record account balances on DASD DLT and external DLTs, and an indicator of whether the balances match.
Output: ✓ Record issuance account balance, indicator of negative balances, security account balance, and transaction status.
Action: ✓ If balances don’t match, trigger a notification but continue with other steps.
Action: ✓ If balances don’t match, trigger a notification but continue with other steps.
Action: ✓ Check for unsettled transactions in security accounts.
01
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02
03
Output: ✓ Record EOD balances for previous and current days, all settled transactions, and the result of balance calculations.
Action: ✓ Validate that EOD balance (previous day) +/- transactions = EOD balance (current day).
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Transaction Validation and Consensus THE SEQUENCE:
Validation: Before Settlement The application layer asks: may this instruction proceed?
1
Instruction received
2
Validated
None of this touches the ledger. An instruction that fails validation never reaches it.
3
Workflow orchestrates
CONSENSUS — ON EVERY STATE CHANGE
4
Matching
Via the API, SWIFT or the user interface
Eligibility
Positions
Liquidity and credit
Matching, eligibility, positions, liquidity and permissions — all off-ledger
The engine determines which ledger operations the instruction requires
Consensus reached — and therefore recorded
The nodes asking: do we agree this change to the record is genuine?
Lock
Unlock
Transfer
Mint
HOW MACH REACHES AGREEMENT Practical Byzantine Fault Tolerance with proof of identity Deterministic, not probabilistic.
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Burn
MACH: WHO DRIVES CONSENSUS, AND WHERE CONTROL AND RISK SIT
1. A known, permissioned set of nodes operated by the platform — not an open or stake-weighted set. 2. With the node set's operator — admission, removal and the fault threshold are governance calls. 3. Concentrated in the operator, in place of the public-chain risk of an unknown majority.
MACH Bridge Providing flexible interoperability
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MACH DSD | Bridge MACH Bridge provides a universal messaging capability to seamlessly connect to the MACH DLT What is MACH Bridge: MACH Bridge is a translation and messaging layer that enables your current infrastructure to connect with MACH’s technology / new digital products via a single interface Unique Selling Points: ✓ Interoperable with other DLT technology e.g. Private/Public which allows for consolidation of ledgers on a central platform ✓ Can insulate and future proof from other financial infrastructure change ✓ Given the simplicity of the MACH Bridge interface, your internal technology can connect with MACH DLT at speed, without the need to change your existing messaging infrastructure or the need to undergo a lengthy integration period
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• MACH client has the option to connect existing environments to the MACH DLT infrastructure quickly and efficiently
• Workflows can be built and deployed securely on local or Cloud based systems
2
• MACH Bridge comes with a library of components that makes it easy to integrate MACH DLT / blockchain environments with your existing traditional infrastructures • This enables new connectors to custom API environments
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Inputs & outputs MACH CLIENT
2
✓ Transactions Post-Trade
✓ Data feeds
Equities
✓ Reporting ✓ Pricing ✓ Messaging ✓ Notifications ✓ Alerts
Fixed Income
1
Derivatives Fixed Income FX
MACH Bridge (Universal Translation Bus)
Product Overview
Custodian / Banks / Asset Managers
MACH DSD | Bridge MACH offers the lowest adoption hurdle with four routes in and out MACH
API
FMI Systems
Participants, trading venues and FMI systems
API
The Unified API is how participants instruct the platform and how venues feed matched trades into it. External FMI systems connect through the same interface.
User interface
Users
FMI Managed or under POA
A participant can operate entirely through the interface, with no node to run and no ledger copy to hold. This is the model most participants adopt first.
SWIFT
Private Permissioned
Workflow
Database
Bridge
SWIFT Integration
SWIFT
Public
View Only Node MACH Chain
Other distributed ledgers
Blockchain Validation Node
Crypto
One worker service per network, written against that network's own capabilities. The orchestrator holds a multi-step operation together across them, and each worker guarantees its own step.
Smart Contract Ledger Blockchain Node
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DLT Keystore
The conventional messaging estate
ISO 15022 and ISO 20022 messages are consumed and produced natively, so a participant already connected to SWIFT needs no new channel to instruct settlement.
Bridge
UI
Participants without a system integration
Blockchain Node
External DLTs
MACH DSD | Bridge The MACH Bridge leverages a micro-services architecture, enhancing flexibility and supporting future scenarios such as smart-contract to smart-contract operations and Hash TimeLocked Contracts (HTLCs).
Bridge Workers
Bridge Orchestrator
Bridge Request Service
Bridge Signing Service
✓ Standalone micro-service applications compatible with the Bridge Orchestrator. ✓ Each worker implements an interface tailored to the linked DLT’s functionality, ensuring atomic operations and reporting success or failure as a whole.
✓ Maps incoming requests to underlying DLT operations, maintaining state for retry or rollback operations to ensure consistency.
✓ Manages incoming requests and facilitates communication between the application layer and bridge components.
✓ Decouples key management from transaction creation, allowing private signing keys to be securely held within a Key Management Service (KMS) or by other parties.
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03
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01
The MACH Bridge offers enhanced flexibility and security through its micro-services architecture, supporting decentralised operations and future scenarios beyond traditional DSDs. Key features include decoupled key management for improved security, standalone workers to avoid dependency conflicts, and comprehensive unit test coverage to ensure reliability. The Bridge Orchestrator maintains consistency and visibility in multi-step operations, while the Bridge Signing Service securely manages transaction signing. Additionally, the platform supports configurable address visibility and uses standard crypto libraries, enhancing overall operational and development efficiency. 31
Contact The Team Find out more
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MACH Team | Contact Details
Steve Vinnicombe Chief Executive Officer Steve.Vinnicombe@deltacapita.com +44 7534 119 363
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Alan Philpot Chief Product Officer Alan.Philpot@deltacapita.com +44 7939 861 845
Lars Mueller Product Lead Lars.Mueller@deltacapita.com +44 7904 526 590