NEW YORK, June 6, 2018 /CNW/ -- DelphX Capital Markets Inc. (DELX.V) ("DelphX") announced today that it has incorporated a Global Security Master containing more than 6 million credit securities within its primary-market system - to enable investors to negotiate tailored protection against default loss through its new risk-hedging Covered Put Option securities.
"We are very pleased to incorporate the vast and continually-updating Security Master within our ATS to enable credit investors to structure, purchase and trade new CPO securities that dynamically offset the default risk of those underlying securities. Compared to the single-name CDS market, where default protection is available for less than 200 issuer names, CPO default protection will be available within the coming DelphX ATS for credit securities issued by more than 350,000 issuers," stated DelphX CEO, Larry Fondren.
DelphX is a technology company dedicated to optimizing fixed income markets around the world by transforming the way credit capital is secured. Its blockchain-powered solution employs proprietary distributed ledger technology and actuarial science to facilitate broad diffusion of risks. The new DelphX alternative trading system ("ATS") market will be regulated by the SEC and operated by DelphX Services Corporation, a FINRA member firm, to facilitate the negotiation, purchase and trading of two new forms of Smart Contract securities:
Covered Put Option (CPO) securities that provide secured default protection for U.S. dollar-denominated corporate, municipal and sovereign securities, with the strike-price of each CPO equaling the total par value of its underlying security; and
Covered Reference Note (CRN) securities that allow investors to take on default exposure relating to a single underlying security or to participate in a pool of diverse risks that broadly diffuses the impact of credit events among all participants.
All CPO and CRN securities will be issued by Quantem Capital Corporation Ltd.("Quantem"), a Bermuda-domiciled subsidiary of DelphX, and transparently administered within Quantem's immutable Distributed Ledger. A traditional book-entry record of each security will also be maintained in parallel by Quantem's issuing and paying agent to provide additional transparency and efficiency.
DelphX is headquartered in the U.S., with locations in Pennsylvania and New Jersey, and its development operations are located in the Kitchener-Waterloo ("Silicon Valley North") region of Canada.
DelphX is not owned or controlled by any entity with a vested interest in the success of particular issuers, securities or market participants. As a result, DelphX will not directly or indirectly compete with any of its ATS participants.
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or availability of an exemption under the securities laws of that jurisdiction.
This news release contains certain "forward-looking statements" including, without limitation, statements regarding the launch of the DelphX market. 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.