Smart Derivative Contracts

Smart Derivative Contracts
by Thomas Schwiertz

Smart Derivative Contracts

Understand your brokers’ constraints and get access to balance sheet at a better price. Optimize your OTC portfolio at the edge of central clearing and bilateral margining. Achieve regulatory compliance with minimal ongoing overheads. XVA Blockchain acts as a calculation agent and can be recognized as a DeFi CCP (Central Counterparty).

Opportunity Highlights

Smart Derivatives Contracts – solution using XVA Blockchain calculation agent. Conceived and developed over 3 years – now ready for deployment in 6 months or less.

Partnership with DTCC to provide delegated reporting to meet new requirements (SFTR, EMIR etc).

For your capital markets derivatives we introduce smart contracts with a fully deterministic termination to remove many of the inefficiencies in collateralized OTC transactions. The automatic termination procedure embedded in the smart contracts replaces the counterparty default by an option right of the counterparty.

The application of smart contracts of XVA Blockchain cures issues in xVAs.

The world’s first productive interest rate swap was conducted in June 2021 with DZ BANK AG.

For more information follow the external links.

Professional Media

Risk.net

Pilot Client and Partner

DZ BANK

Christian Fries, Peter Kohl-Landgraf

Jens Friedrich

Smart Derivative Contracts (German)

German Press

Capital

Dirk Elsner

Legal Framework

Master Agreement

ISDA

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