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Our Solutions

PeerNova has established itself as a leader in this emerging space by working directly with banking and securities customers to solve their specific data challenges and concerns. Cuneiform provides an ROI for customers, who are facing ever increasing compliance-related cost structures.

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Financial Transactions Book of Records

Large financial institutions make hundreds of billions of dollars of transactions every day.  In the event of a system failure, it is imperative that the data is restored quickly, while maintaining data lineage and validity.

Current Challenges:

PeerNova is working with a large financial institution that has a complex transaction ecosystem to settle millions of transactions daily.   These transactions are very complex and may involve 10-40 overall steps in a workflow passing through multiple transactions sub-systems in the pipeline.

Transactions are processed by various legacy systems and subsystems as they pass through the workflow pipeline.  There is no single, authoritative financial transaction book of records for the overall system. When a subsystem fails, the failure can be catastrophic to the overall system as payments and settlement may no longer be completed.

PeerNova Solution:

PeerNova is augmenting existing transaction systems by building a consolidated, authoritative transaction book of records. The solution maintains full audit trails of the transaction data captured from the various transaction platforms and at the same time provides strong assertions about event lineage of data. In the event that a transaction system fails, data can be restored quickly.  The end solution provides quick fulfillment of transaction obligations and lowers overall risk.

PeerNova solution provides the following benefits:

  • ingesting financial transactions into the PeerNova Cuneiform platform using a horizontally scalable architecture
  • building data integrity checks and cryptographic linkages that can provide assertions and tamper-evident proofs
  • data at rest and data in transit encryption
  • executing optimized searches on transactions at very high speeds based on defined search parameters
  • providing real-time Apache Spark analytic dashboards
  • providing resiliency by replicating data across multiple data centers

Lineage of Capital

Cuneiform can be used to track the flow of funds with greater certainty, thereby providing financial institutions more transparent, timely and auditable reporting methods for clients. Custody banks, like State Street, manage trillions of dollars of invested capital on behalf of their clients, including asset managers, asset owners, insurers, official institutions, hedge funds and private equity funds and other alternatives.

Current Challenges:

Large custodian banks, like State Street, manage invested capital on behalf of their client, some of whom are private equity funds.

Private Equity funds require asset and transaction based performance tracking and waterfall computations. This, in turn, requires that business rules are applied to track the source of each dollar invested (e.g. it may come from capital called, debt drawdown, or reinvested proceeds of another deal) and the use of each dollar contributed (e.g. it may be invested in a specific deal, used to pay down debt or pay fees/expenses, or held as working capital). While there are tools in place to track the sources and uses of funds, for the most part the process of pulling the sequential ordering of these transactions is tediously manual which makes it very error-prone. Accountants have to follow strict guidelines with respect to how funds are moved between deals based on the availability of the funds. Being able to provide strong assertions on the auditability of the lineages created is also lacking.

PeerNova Solution:

PeerNova is working with a large custodian bank to track the flow of funds with greater certainty, thereby providing more transparent, timely, and auditable reporting methods. The solution tracks the lineage of capital within private equity funds so as to tell a story of the flow of funds from investors, tracked through all changes in the portfolio, movement between deals and legal entities, related financing and fund operations and the eventual return of the capital to investors. This lineage of capital tracking has an impact on how the performance is reported and what specific profit sharing and allocation of the same will be in effect. Stakeholders and primarily the bank’s investors are the most likely candidates interested in the verification of the lineage reports created.

PeerNova solution provides the following benefits:

  • ingesting data that simulates private equity fund transactions from excel sheets
  • recording transaction attributes in an immutable fashion to make cryptographic assurances of the same
  • mapping transactions into source and use buckets against deals to create aggregate balances
  • creating cryptographic linkages between transactions
  • applying “replay-able” business rules that define the movement of funds between and across deals to create capital lineage
  • generating reports based on filter parameters via a user interface

“Tracking the flow of investment capital is critical for fund managers in calculating the performance of their investments. Together [with PeerNova], we are developing technology that is designed to track the lineage of capital with precision and verifiability. While currently a trial, the potential to provide that level of detail more efficiently and more effectively can bring meaningful value to our clients.”

Hu Liang, Sr. VP – Emerging Technologies Center – State Street Bank

Post-Trade Ledger System

Large financial institutions execute millions of transactions per day.  As the transactions move through the system, additional data is generated by front, middle, and back offices.   Using PeerNova’s Cuneiform system, huge amount of this type of data between disparate systems is reconciled at high speeds.

Current Challenges:

PeerNova is working with a large financial market maker to build an order fulfilment and reporting system to manage millions of daily trade transactions. As order transactions move through the system, additional data is generated by front, middle, and back offices. An incoming order could potentially be split up into child orders, each triggering processes in different market places to get order quotes for pricing, comparison and final execution.

In the current infrastructure, there is no centralized repository in place to reconstruct the lineage of events connecting orders and executions in a straightforward, automated way for the sake of auditability. There is also no way to assert or verify the data describing the lineage of events for these order messages.

PeerNova Solution:

PeerNova’s platform is used to augment the ecosystem with a post-trade ledger application that ensures that huge amounts of equity data between disparate systems are verifiably reconciled.  Order messages are ingested into the platform and order blockchains are created.  The relationship between the parent and child message schemas is defined using a pre-configured lineage service.

Agencies like FINRA require the submission of OATS reports on a nightly basis so that they can tie multiple order messages back to a single order.  Agencies like FINRA and other external auditors that want to independently verify order audit trails could be one of the biggest consumers for a consolidated audit system enabled by this solution.

PeerNova solution provides the following benefits:

  • interfacing with existing systems to ingest order messages in the form of FIX 4.2 messages
  • storing cryptographic logs of these messages
  • providing widely witnessed data integrity checks and cryptographic linkages via an anchoring service
  • providing a tool to validate data exported from the system to simulate a regulatory report filing scenario
  • providing optimized live searches via an interface
  • displaying lineage of orders and corresponding executions
  • displaying real-time metrics for system performance using Apache Spark
  • running full-fledged SQL queries using a Postgres compatible query builder
  • showcasing verification of obfuscated data tied to user profiles via redaction