Hi Rich. I verified on my 2016.2.0 instance that Delegated Authentication works for SOAP requests. Initially I had problems similar to yours. Check the following:
1. ZAUTHENTICATE.mac is in the %SYS namespace.
2. It has a line similar to
set Properties("Roles")="%Developer"
Otherwise you’ll get <PROTECT> errors.
Also, you may wish to check Devchange STC2188 – apparently Caché versions prior to 2014.1 had a problem with SOAP delegated authentication.
HTH,
Jonathan
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