This year, the focus goes beyond technology to mining business insights around how cloud enables strategic industry trends such as Open and Virtual Banking and Insurance, Security and Compliance, Data Analytics and AI/ ML, FinTech and RegTech, Surveillance and more through sharing of best practices and use cases. In sessions led by customers, partners, industry leaders and AWS subject matter experts, you’ll learn how AWS helps financial institutions to focus on the innovation and outcomes that truly drive business forward. Business stakeholders, market makers, and technology owners will all learn something new, valuable and actionable.

2. Interledger DvP Settlement on
Amazon Managed Blockchain
Andrew Koay
Head of Blockchain Technology
Singapore Exchange Limited
S e s s i o n I D
Paul Sin, PhD
Partner, FinTech Practice
& Asia-Pacific Blockchain Lab
Deloitte Consulting (China)
Jointly Presented by:
Michael Edge
Senior Cloud Architect
AWS Professional Services

3. Introduction to Singapore Exchange
A diversified exchange group that runs key market infrastructure
including the Singapore stock market and a pan-Asian derivatives
exchange covering all major asset classes.
High annual dividend of 28
cents for the past 5 years
Strong cash-flow with debt-
free Balance Sheet
Anchored in Singapore, Asia’s
only AAA-rated economy
Jointly Presented by:

4. SGX Global Footprint
SGX is headquartered in Singapore, with overseas offices in Beijing, Chicago,
Hong Kong, London, Mumbai, New York, San Francisco, Shanghai and Tokyo.
London
Tokyo
Mumbai
Singapore
Hong Kong
Shanghai
Beijing
Chicago
New YorkSan Francisco
Jointly Presented by:

5. End of an era through marketplace innovation
The closure of Trading Pits brought back the most memorable experiences,
the tradition of Open-Outcry trading…
 Buyers and Sellers stood on steps that descend into the pit
 Orders were shouted or flashed to the trading specialist through hand gestures/signals,
or delivered to the pit by runners
 Each pit specialised in a specific commodity, and was the only place to trade that commodity
Jointly Presented by:

6. BIG
Experiments!
Jointly Presented by:

7. About Project Ubin – A multiphase journey
Project Ubin is a collaborative project between the Monetary Authority of
Singapore (MAS) and the industry to explore the use of Distributed Ledger
Technologies (DLT) for clearing and settlement of payments and securities.
Source: http://www.mas.gov.sg/Singapore-Financial-Centre/Smart-Financial-Centre/Project-Ubin.aspx
Domestic Delivery vs
Payment for
Securities Settlement
Use of digital currency in
Real-Time Gross
Settlement (RTGS)
Achieved gridlock
resolution and liquidity
savings mechanism
(LSM) on a distributed
system without
compromising on
privacy
Phase 1 Phase 2 Current phase
Delivery vs Payment vs
Payment (DvPvP) for
Cross-border settlement
of payments and
securities
Payment vs Payment
(PvP) for
Cross-border settlement
Current Phase Future Phase
Trading Post Trade Clearing Settlement DepositoryCapital Raising
Jointly Presented by:

8. Our Objectives
1. Interconnect separate DLTs
of various characteristics
and features
2. Mitigate counterparty risks
in DvP with recovery on
cash and securities ledgers
3. Achieve DvP settlement
finality with Clearing
Members
4. Strengthen investor
confidence and experience
with safety and reliability
Jointly Presented by:

9. And why Amazon Managed Blockchain?
Ease of creating and managing scalable business networks
Quickly create blockchain networks
that span multiple AWS accounts.
Easily add or remove members and
monitor the network
Fully managed
Choice of Hyperledger Fabric
or Ethereum (coming soon) Improves ReliabilityScalable and secure
Easily scale your blockchain
network as the usage grows. Also,
Managed Blockchain secures your
network certificates with KMS
Choose the right framework for
your needs, whether you are
building a permissioned or public
network
Managed Blockchain improves the
reliability of the “ordering service,”
by replacing the default technology
with QLDB. This improves
durability.
Jointly Presented by:

10. Our Architecture
Seller’s
Securities
(e.g. Singapore Government Securities)
Buyer’s
Cash
(e.g. Central Bank-issued Digital Currency)
“Blockchain A” “Blockchain B”
Delivery of
Securities
versus
Payment of Cash
settlement across separate
DLTs; each of
varied characteristics
and features
Arbitrator
Jointly Presented by:

11. Our Preview
on Amazon
Managed
Blockchain
Single Region,
Single Country
Deployment
Arbitrator
Fabric Certificate
Authority
Bank A
Peer Node
VPC Endpoint
Fabric Client
Node
VPC Endpoint
API Server
Fabric Client
Node
API Server
(Ordering Service)
Fabric Certificate
Authority
Bank B
Peer Node
Fabric Certificate
Authority
RMO
Peer Node
Fabric Certificate
Authority
Central Bank
Peer Node
Amazon VPC
PrivateLink
Blockchain X
Arbitrator
VPC Endpoint
Fabric Client
Node
API Server
VPC Recognized Market Operator (RMO)
Hyperledger Fabric Network by Amazon Managed Blockchain VPC Central Bank / FIs
VPC Bank B
Buyer/Seller
VPC Bank A
Buyer/Seller
Digital Asset Digital Currency
Jointly Presented by:

12. Instituting key designs for Laws and Regulations
 Time Boundaries
 Account Controls
with multiple-signatures
 Contract locks
with secure secrets
1
2
3
 Smart contracts between buyer and seller are created with time-boundaries
 Contracts must be discharged within those specified time boundaries
 If contracts are not discharged within time-boundary, design allows to protect
investors interest (arbitration and recovery)
 Multi-signature conditions starting with 2-of-3 to enable the Exchange (e.g.
Securities Arbitrator or Cash Arbitrator) to safe keep Escrow Private Keys
 ‘Off-chain’ and ‘out-of-band’ secure Secrets for enhanced security
 Enhances security with blockchain-independent transfer of secret
Jointly Presented by:

13. Our Secure Secrets
Layout 0----+----1----+----2----+----3----+----4----+----5----+----6----+----7----+----8----+----9----+
2 Digital@SGX
3 DATE/TIME: 12-FEB-2018, 22:02:28 Electronic Password Mailer
4
5 AAAAAAAAA1AAAAAAAAA2AAAAAAAAA3AAAAAAAAA4AAAAAAAAA5
6
7 AAAAAAAAA1AAAAAAAAA2AAAAAAAAA3AAAAAAAAA4AAAAAAAAA5
8 AAAAAAAAA1AAAAAAAAA2AAAAAAAAA3AAAAAAAAA4AAAAAAAAA5
9 AAAAAAAAA1AAAAAAAAA2AAAAAAAAA3AAAAAAAAA4AAAAAAAAA5
0
1 Dear Sir/Madam,
2
3 These are your details required to approve the transaction at Digital@SGX.
4
5 TRANSACTION REFERENCE :
6 AAAAAAAAA1AAAAAAAAA2AAAAAAAAA3AAAAAAAAA4AAAAAAAAA5AAAAAAAAA6AAAAAAAAA7AAAAAAAAA8AAAAAA
7
8
9 NOTES:
0 Please follow the security guidelines below to safeguard against fraudulent transactions:
1 1. You will need your password (found in this password mailer) to approve the transaction.
2 2. For security reasons, do not disclose your password to anyone.
3 3. If you need further assistance, contact us at +65 6535 7511 or asksgx@sgx.com.
4
5 TRANSACTION PASSWORD :
6
Line# Field Name Column Length Field Description
3 PrintDateTime 16 to 37 21 Format in DD-MON-YYYY, HH24:MI:SS
5 UserLegalName 5 to 55 50 User Legal Name
7 Address Line 1 5 to 55 50 Address Line 1
8 Address Line 2 5 to 55 50 Address Line 2
9 Address Line 3 5 to 55 50 Address Line 3
16 TransactionRef 5 to 91 86 Transaction Hash (e.g., SHA-512 bit) in Base64 Encoding
25 PasswordImage 70 to 80 8 Password Image (e.g., case-sensitive, alpha-numeric)
25 PasswordQRCode 85 to 90 5 Password Quick Response Code (QR Code)
For the experiment, we’ve selected “secp384r1” (aka “P-384”) which is NIST/SECG
approved cryptography for Elliptic-Curve over a 384 bit prime field.
Jointly Presented by:

14. Our Conclusions
“Higher Investor Confidence”
Design for Arbitrator Role
• Designing for arbitrator’s role provide
avenue for recourse for disputed
transactions
• Maintains a central role to monitor and
facilitate market functionalities
Potential for Round-the-Clock
Operations
Underlying DvP Design can be further
explored for cross-border transactions
where time-zone differences could mean
a delay in settlement time, exposing
participants to unnecessary FX
fluctuations and principal risks.
• Smart contracts can be used to apply
obligations and rights consistently and
coherently
• Compliance enforcement through smart
contracts reduces costs
“Flexibility to Reduce Settlement time”
• Tokenized currency coupled with smart
contracts allows for significant reduction in
settlement time on trade by trade basis
1
2
3
4
5
6
• Distributed control prevents account
compromise
• Layered security with blockchain-
independent transfer of secret
Enhances investors’ security
Multi-Sig, off-chain, out-of-band
secure Secrets
Project DvP’s underlying design,
architecture & benefits can be scaled for
other asset classes beyond central bank-
issued digital currencies including
securities, corporate bonds, commodities
etc. and other investor types such as retail
etc.
Potential broadening of asset
classes & investor types
“Consistently” applied Rights & Obligations
Jointly Presented by:

15. Key Takeaways
We worked with AWS Professional Services to move our existing
investments in Hyperledger Fabric to Amazon Managed Blockchain without
changing any code. We can now focus on adding business value and not
worry about managing or scaling the underlying platform.
Andrew Koay
Head of Blockchain Technology
Singapore Exchange
Jointly Presented by:

16. Key Driver 1: B2B, Not B2C
For enterprise applications, DLT has been proven to solve one key problem: B2B Data
Synchronization.
Consumer
Business
Mobile App
Web Portal
Open API I won’t use my
competitor’s system.
I can’t depend on my
partner for high resiliency.
I can’t send sensitive
information across border.
Jointly Presented by:

17. Key Driver 2: Untangling API Spaghetti
It eliminates many-to-many API integrations, and facilitates: Real-Time B2B Data
Synchronization.
DLT Platform
Jointly Presented by:

18. Payment
DLT
Key Driver 3: Ecosystem of Ecosystems
It allows cross-organization, cross-industry, and cross-border data exchange with:
Secured Real-Time B2B Data Synchronization.
Liquidity Provider OTC Post-Trade
DLT Platform
Custodian
Bank
Bank
Futures
Commissions
Merchants (FCM)
Central
Counterparty
(CCP)
Payment and Delivery can be conducted simultaneously
through smart contract execution.
Regulator can have a real-time visibility of credit and liquidity exposure in the system,
meeting latest requirements such as BASEL III intraday liquidity monitoring.
Regulator
Broker
Asset Management
Banks will submit confirmations of executed trades, and will
shorten settlement time as well as other operations such as static
data preparation, fixing, payment, maturing, reconciliation, etc.
1
2
2
3
1
2
3
Confirmation on Executed Trade
Settlement instruction
Payment Instruction
2
Delivery Instruction
Delivery will be processed real-time, and duplicated
financing (pledging same collateral) will be detected.
(If they still have a role,) real-time visibility of trade
status and calculation of commission will be enabled.
Jointly Presented by:

19. Critical Success Factors
Data
Standard
Consortium
Governance
Regulatory
Support
Adoption
Open
Commercial
Model
Security
Business
Case
Interoperability
Distributed Ledger Technology (DLT) is best used for B2B data synchronization, hence adoption is
the key to return on investment.
Scalability
Jointly Presented by:

20. Deployment Approach
Ecosystem players can choose to use a common application, host a DLT node themselves for data
synchronization, or integrate with cloud-hosted APIs.
On Premise
UI
Exchange Platform
API
Smart Contract
DLT Data
Cloud
UI
Settlement & Clearing
API
Smart Contract
DLT Data
UI
Regulatory
Supervision
API
Smart Contract
DLT Data
UI
Portfolio
Management
API
Non-DLT Platform
UI
Trading System
API
Non-DLT PlatformCloud
UI
Custodian System
API
Smart Contract
Exchange Custodian Banks BrokerRegulator Asset Management
DLT Data
Jointly Presented by:

21. Technology Convergence
FinTech is defined with ABCDs, which are now meshing together.
Jointly Presented by:

22. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Scan the QR code on your
badge and complete the
online survey to receive an
AWS passport holder or a
travel organizer at the
reception counter
AFTER 3pm.
YOUR FEEDBACK IS IMPORTANT TO US

23. Thank you!
Andrew Koay
andrew.koay@sgx.com
Paul Sin, PhD
psin@deloitte.com.hk
Scan me!
Forward Looking Statements
This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Statements in this presentation that are not historical facts are statements of future expectations with respect to the financial conditions, results of operations and businesses,
and related plans and objectives. These forward-looking statements are based on SGX’s current intentions, plans, expectations, assumptions and views about future events and are subject to risks, uncertainties and other factors, many of which are outside SGX’s control. Because actual
results, performance or events could differ materially from SGX’s current intentions, plans, expectations, views and assumptions about the future, such forward-looking statements are not, and should not be construed as a representation as to future performance of SGX. It should be
noted that the actual performance of SGX may vary significantly from such statements.
This presentation is being made available to certain authorised recipients for their general information only.
While SGX and its affiliates have taken reasonable care to ensure the accuracy and completeness of the information provided in this presentation, they will not be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind)
suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information. Neither SGX nor any of its affiliates shall be liable for the content of information provided by or quoted from third parties. Examples provided are for illustrative purposes
only. The information in this presentation is subject to change without notice.
Any recirculation, transmission or distribution of this presentation or any part thereof by any third party requires the prior written permission of SGX. SGX and its affiliates disclaim all responsibility and liability arising in connection with any unauthorised recirculation, transmission or
distribution of this presentation or any part thereof.
© Singapore Exchange Limited
Jointly Presented by:
Michael Edge
edgema@amazon.com