Toronto, Ontario–(Newsfile Corp. – March 23, 2022) – DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) (“DelphX“) is pleased to announce a license agreement with Chicago-based Halo Investing (“Halo”) to develop and launch the DelphX structured products platform. Currently ranked among Fintech’s fastest growing companies, Halo has created the first multi-issuer technology platform that enables registered investment advisors, banks and investment professionals to access structured products and other protective investment solutions that were previously unavailable to most investors.
Under the licensing agreement, Halo will construct for DelphX an industry-first automated platform that will allow both buyside firms and dealers to negotiate and trade the DelphX-issued Collateralized Put Options (CPOs) and Collateralized Reference Notes (CRNs).
This new platform will leverage Halo’s current technology with a customized overlay to meet the needs of DelphX’s new product, thereby propelling DelphX forward as a leading innovator in structured product technology. The platform will provide significant improvements in ease of access, transparency, and individual control over the investment process for all participants.
“To partner with one of the fastest growing, most innovative companies in our space is humbling and gratifying, because it validates the importance of our technology and the potential role for CPOs and CRNs in the marketplace,” said DelphX CEO Patrick Wood. “Halo has revolutionized access to sophisticated protective investment strategies, so their technology expertise is already well established. With this agreement, DelphX will transform into a true fintech innovator with the scalability expected from a platform-technology company, so the impact should be quite rapid. We believe that our products can serve multiple segments of the structured products market, extending our reach into several layers of this multi-trillion-dollar pool of assets.”
As a reminder, the DelphX CPO/CRN products are structured as private placement securities, making them acceptable for use by managers who cannot utilize traditional derivatives or swaps. The initial target market is significant, currently estimated to represent over $15 trillion in Credit Default Swaps (CDSs) and U.S. Investment Grade Corporate Bonds, based on ISDA Global Credit Default Swaps Market Study, September 2019 and SIFMA US Corporate Bonds Statistics as at Q4 2021.
About DelphX Capital Markets Inc.
DelphX is a technology and financial services company focused on developing and distributing the next generation of structured products. Through its special purpose vehicle Quantem LLC, the Company enables fixed income dealers to offer new private placement securities that optimally transfer and diffuse credit risk, while allowing the enhancement of yield. The new DelphX securities will enable dealers and qualified institutional investors (QIBs) to competitively structure, sell and make markets in:
- Collateralized put options (CPOs) that provide secured default protection for underlying corporate, municipal and sovereign securities;
- Collateralized reference notes (CRNs) that enable credit investors to take on the default exposure of an underlying security in exchange for enhanced yield.
All CPOs and CRNs are fully collateralized and held in custody by BNY Mellon. CPOs and CRNs are proprietary products created and owned by DelphX Capital Markets.
For more information about DelphX, please visit www.delphx.com.
Mark Forney, Corporate Development
DelphX Capital Markets Inc.
This news release contains certain “forward-looking statements” including, without limitation, statements regarding the launch of the DelphX platform. Such forward-looking statements involve risks and uncertainties, both known and unknown, that may cause actual results or events to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions, regulatory uncertainties, and the demand for our products. The forward-looking statements in this news release are based on factors and assumptions regarding, among other things, the state of the capital markets, the ability of DelphX to successfully manage the risks inherent in pursuing business opportunities in the financial services 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 laws, DelphX undertakes no intent or obligation to update or revise 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.