Smart Derivative Contracts

Understand your brokers’ constraints and get access to balance sheet at a better price.

By combining our trade repository reporting with advanced collateral management you can optimize your OTC portfolio at the edge of CCP Clearing and bilateral margining. Achieve regulatory compliance with minimal ongoing overheads.

Reduce initial margin to free up cash and improve your returns. The compelling advantage of our settlement agent service is the re-use possibility of received collateral for further money market transactions. You can use your securities reported to our securitisation repository to cover your margin requirements. In addition you can use listed securities or your exotic instruments if connected to our reference and master data service based on distributed ledger technology.

For your un-collateralized 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.
–> „Download Academic Note“ (Paper: Christian Fries, Peter Kohl-Landgraf)

More relevant documents will be published soon.