This blog is the first in a series exploring how Tokenovate is operationalising the FINOS Common Domain Model (CDM) to bring clarity, precision, and scalability to derivatives and Securities Financing Transactions (SFT) markets. Together, we’ll uncover how CDM is not just a tool but a catalyst for revolutionising post-trade operations and redefining what’s possible in financial markets.
A Strategic Imperative for Capital Markets
By Richard Baker, Tokenovate Founder and CEO.
The financial industry is at a transformative inflection point. Legal and regulatory reforms, rising cost pressures, and the rapid pace of technological innovation have converged to create an unprecedented opportunity for systemic change. Traditional approaches of layering new systems onto outdated infrastructures can no longer meet the demands of modern markets.
I have seen firsthand what it takes to navigate these moments. In telecommunications, I witnessed the transformative shift from isolated systems to interconnected networks, which revolutionised service delivery and fostered much of the innovation we see in telecoms today, such as the development of global standards for mobile communication like GSM and 4G networks. In financial services, leading Cleartrade Exchange taught me the power of standardisation and technology to streamline operations and reduce costs. These experiences have shown me that foundational change – embracing common standards, building interoperable systems, and leveraging cutting-edge technology – is what enables industries to break free from inefficiencies and achieve long-term resilience.
At Tokenovate, we believe operationalising the Common Domain Model (CDM) is the key to seizing this moment and reshaping financial markets for the future.
What do we mean by operationalising CDM?
To us, it means more than simply adopting a technical framework – it involves translating its standardised representations of financial products, processes, and lifecycle events into real-world systems and workflows. By embedding CDM into every aspect of our operations, Tokenovate enables scalable, streamlined, and automated financial market solutions. This approach harmonises data, reduces risk, and transforms post-trade processes into a competitive advantage.
The Strategic Imperative for Change
The financial ecosystem is under strain. Over the past decade, firms have layered complex regulatory requirements onto fragmented infrastructures, creating a patchwork of processes that drive up operational costs, introduce data inconsistencies, and embed systemic inefficiencies. Firms now spend billions annually on reconciliations, manual interventions, and compliance reporting—costs that erode margins, stifle innovation, and hinder economic growth.
At Tokenovate, CDM is central to our strategy. By replacing bespoke workflows with a unified, standardised framework, CDM enables scalable operations, streamlined compliance, and reduced risk. Its precision transforms post-trade processes from a cost centre into a competitive advantage.
Blockchain amplifies the impact of CDM. Our UTXO-based blockchain provides immutable records of every transaction and lifecycle event, ensuring that data remains secure, transparent, and tamper-proof. By enabling the tokenisation of assets, this technology unlocks new opportunities for liquidity, efficiency, and accessibility in financial markets, transforming post-trade operations into a more streamlined and frictionless process.
But CDM adoption is more than operational efficiency; it’s a pathway to strategic leadership. It replaces inefficiency with precision, complexity with clarity, and fragmentation with cohesion, creating a new operational paradigm for financial markets and freeing up billions in locked costs which can be more usefully deployed to drive business expansion, product development and global economic growth.
For us, CDM is not just a technical solution. It is embedded within every aspect of our operations. It is engrained within our DNA.
The Time is Now
2025 marks a pivotal moment for capital markets. Regulatory frameworks such as MiCA are coming into force. Thanks to the efforts of the Law Commission in the UK, ISDA, ICMA, ISLA, and others, we have increasing legal clarity on the legal and contractual rights associated with digital assets. Advances in artificial intelligence and blockchain technology enable unprecedented levels of automation and scalability. For forward-thinking firms, this is the time to lead financial markets into the future.
My career has been guided by a commitment to solving industry-wide challenges through collaboration and innovation. At Tokenovate, that ethos is reflected in every decision we make. I am proud to lead Tokenovate at this critical juncture, supported by an exceptional executive team whose expertise and vision drive our mission. In upcoming blogs, you will hear directly from them about the commercial, legal, regulatory, and technological benefits of operationalising CDM. Together, we are not just solving today’s challenges; we are engineering the capital markets of the future.
Subscribe to our YouTube channel for demo videos of our platform and progress. Or sign-up to receive news straight to your inbox at the bottom of this page.
