Guaranteed Protection

Blockchain-powered Collateralized Put Options™ (CPOs) pay a strike price equal to 100% of the par value of the underlying security following a qualifying credit event.

Each CPO thus fully guarantees the principal of its underlying credit security.

Default-Compensating Options

All DelphX® participants can anonymously negotiate smart CPO securities that precisely meet their protection and/or speculation requirements for any of more than 1 million eligible underlying corporate, municipal, sovereign and other credit issues.

All CPOs:

  • Are competitively negotiated and originated within the primary DelphX® market
  • Specify a negotiated fixed premium and term
  • Continually adjust in value to complement the market value of the underlying security
  • Are transparently recoded and administered in the blockchain-powered Quantm™ distributed ledger integrated within DelphX
  • Are immediately eligible upon issuance for trading on the secondary DelphX market
  • Are continuously benchmark-priced through validated MAVn® pricing forecasts
  • Facilitate liquid basis trading of the CPO and its underlying security.


Optional Full or Mark-to-Market Collateralization

Buyers of Each CPO May Select Either:

  • 100% Collateralization by cash, cash-equivalent assets and Guaranteed Investment Contracts issued by highly-rated insurers; or
  • MTM Collateralization* by such assets, the percentage of which automatically adjusts daily based upon current market pricing of CPO protection for the underlying issue.

* Upon reporting of a credit event involving an underlying issue, the MTM collateralization percentage of all CPOs referencing that issue immediately increase to 100%.


Market-Based Valuation

When a CPO is exercised, the market value of its underlying security is determined by a single-price auction conducted on the DelphX platform - through which all available supply of that underlying security is sold. The clearing-price determined by the auction is then subtracted from the underlying security’s par value to determine the option proceeds payable to holders in Cash Settlements of all CPOs referencing that security.


Single-Price Auction of Underlying Security


A Better Bond Market

Bond_Market_2.0.jpgDefault risk is too concentrated. The market is nontransparent. Too few issues can be protected. DelphX addresses these problems, providing guaranteed credit protection, deeper market liquidity and enhanced investor yields.

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