System and method for dual blockchain based validation of instrument reference data and transaction reporting

A method for reporting transaction reports, the method comprising:

• receiving, by a computing node, transaction reports from a plurality of financial entities, wherein each of the plurality of financial entities and the computing node are part of a blockchain network, and wherein the blockchain network comprises a plurality of computing nodes comprising the computing node;
• validating, by the computing node, the transaction reports based on a smart contract system installed in the computing node, wherein the smart contract system executes a plurality of report rules on the transaction reports based on validated instrument reference data stored in a database;
• determining in real-time, by the computing node, whether the transaction reports comprises at least one discrepancy, based on application of the plurality of report rules on the transaction reports;
• receiving, by the computing node, corrected transaction reports contemporaneous to determining that the transaction reports comprise at least one discrepancy, from one or more of the plurality of financial entities;
• and
• consolidating, by the computing node, transaction reports received from each of the plurality of financial entities to generate validated transaction reports, wherein the validated transaction reports comprise at least one of original or corrected transaction reports.

A smart contract system for validation of instrument reference data, the smart contract system comprising:

• a processor;
• and
• a memory communicatively coupled to the processor and having processor instructions stored thereon, causing the processor, on execution to:
• receive raw instrument reference data from a plurality of financial entities, wherein each of the plurality of financial entities and the computing node are part of a blockchain network, and wherein the blockchain network comprises a plurality of computing nodes comprising the computing node;
• validate the raw instrument reference data by executing a plurality of data rules on the raw instrument reference data;
• determine in real-time, whether the raw instrument reference data comprises at least one discrepancy, based on application of the plurality of data rules on the raw instrument reference data;
• receive corrected raw instrument reference data contemporaneous to determining that the raw instrument reference data comprises at least one discrepancy, from one or more of the plurality of financial entities;
• and
• consolidate instrument reference data received from each of the plurality of financial entities to generate validated instrument reference data, wherein the validated instrument reference data comprises at least one of original or corrected raw instrument reference data.

A smart contract system for reporting transaction reports, the smart contract system comprising:

• a processor;
• and
• a memory communicatively coupled to the processor and having processor instructions stored thereon, causing the processor, on execution to:
• receive transaction reports from a plurality of financial entities, wherein each of the plurality of financial entities and the-computing node are part of a blockchain network, and wherein the blockchain network comprises a plurality of computing nodes comprising the computing node;
• validate the transaction reports by executing a plurality of report rules on the transaction reports based on validated instrument reference data stored in a database;
• determine in real-time, whether the transaction reports comprise at least one discrepancy, based on application of the plurality of report rules on the transaction reports;
• receive corrected transaction reports contemporaneous to determining that the transaction reports comprise at least one discrepancy, from one or more of the plurality of financial entities;
• and
• consolidate transaction reports received from each of the plurality of financial entities to generate validated transaction reports, wherein the validated transaction reports comprise at least one of original or corrected transaction reports.