Resolution:
The following steps explain how to configure JAAS authentication in the ActiveMatrix environment.

-Create or modify the JAAS.config file in your environment to the following:

AuthenticationService {
com.tibco.atlas.auth.jaas.AuthenticationServiceLoginModule required
debug=true
authority="localhost:8120"
scheme="http"
wspath="/com.tibco.atlas.auth.matrix.provider/services/AuthenticationService";
};

-Add the following properties to the node.tra file of the node on which JAAS authentication is to be configured:

java.property.java.security.auth.login.config=JAASConfigFilePath,
where JAASConfigFilePath is the absolute path of the JAAS.config file.
java.property.debug=true
java.property.com.tibco.bw.security.login.jaas=true
java.property.javax.net.debug=SSL,all

-Create a user in ActiveMatrix Administrator. You can test JAAS authentication using this user credential.
See TIBCO ActiveMatrix Administration for details on how to create a user.

-Deploy and start the service assembly. Once the service assembly is running, send a request from the ActiveMatrix BusinessWorks client to authenticate the user using JAAS.