Dealers can now structure and sell new credit default
protection and tailored debt securities on demand – without
committing capital
NEW YORK, Jan. 24, 2019 /CNW/ -- DelphX Capital
Markets Inc. (TSXV: DELX) ("DelphX") today
unveiled its new Cloud-based platform in which fixed income dealers
can structure new 144A securities that optimally meet the
investment, hedging and speculation needs of their institutional
customers. Through the platform dealers can customize the terms of
each new security they sell, and make markets in all outstanding
issues, without incurring capital costs or inventory
limitations.
The streamlined process enables dealers to design a new security
while concurrently negotiating its sale with potential purchasers.
Included among the available security forms are: a) put options
that provide pre-funded protection against loss from a credit event
involving a referenced underlying issue; and b) enhanced-yield
notes linked to the performance of a 3rd party
corporate, municipal, sovereign, structured or other credit issue.
All securities originated on the platform will be collateralized by
cash and investment grade debt securities held in custody by an
independent custodian.
"Our system is the first and only source of pre-funded default
protection and is designed to restore the ability of dealers to
profitably provide cost-effective protection and robust credit
liquidity - with no adverse balance sheet impact," said
Larry Fondren, DelphX's Founder and
CEO. "It also enables dealers to structure new securities that can
be exchanged with counterparties for outstanding CDS contracts -
providing superior protection to customers and increasing dealers'
capital, inventory capacity and ROTE."
About DelphX:
DelphX is a technology and financial services company focused on
optimizing fixed income markets. Its Cloud-based solution employs
proprietary distributed ledger technology, actuarial science and
reinsurance protocols to facilitate optimal diffusion of credit
risk. The new DelphX platform will be regulated by the SEC and
operated by DelphX Services Corporation, a FINRA member firm, to
facilitate the origination and trading of:
- Covered Put Options (CPOs) that provide secured default
protection for underlying corporate, municipal and sovereign
securities, with each CPO strike-price equaling the par value of
its underlying security; and
- Covered Reference Notes (CRNs) that enable credit
investors to take on the default exposure of a single underlying
security or optionally participate in a pool of diversified risks
that broadly diffuses the impact of credit events.
All CPOs and CRNs will be transparently administered within
DelphX's immutable distributed ledger. A traditional book-entry
record of each security will also be maintained in parallel by an
independent issuing and paying agent to provide additional
transparency and efficiency.
For more information about DelphX, please visit
www.delphx.com.
Forward-Looking Statements
This news release contains certain "forward-looking statements"
including, without limitation, statements regarding the launch of
the DelphX facility. Such forward-looking statements involve risks
and uncertainties, both known and unknown. The results or
events depicted in these forward-looking statements may differ
materially from actual results or events. In addition to other
factors and assumptions which may be identified herein, assumptions
have been made regarding and are implicit in, among other things:
the state of the capital markets, tax issues associated with doing
business internationally, the ability of DelphX to successfully
manage the risks inherent in pursuing business opportunities in the
financial services and Blockchain industry, and the ability of
DelphX to obtain qualified staff, equipment and services in a
timely and cost-efficient manner to develop its business. Any
forward-looking statement reflects information available to DelphX
as of the date of this news release and, except as may be required
by applicable securities laws, DelphX disclaims any intent or
obligation to update any forward-looking statement, whether as a
result of new information, future events or results or
otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE DelphX