The foreign exchange and over-the-counter (OTC) derivatives market creates substantial counterparty risk for both banks and their clients. Managing market and counterparty risk and associated collateral carries burdensome administrative costs.
Symbiont's Blockchain Solution
Symbiont smart contracts manage the creation, execution and lifecycle management of OTC derivative agreements, effectively mitigating risk for financial institutions that rely on FX and OTC derivatives to run their businesses.
Reduce Counterparty Risk:
Enable automated, intraday posting of collateral, limiting time between mark-to-market calculations and the resulting counterparty exposure
Cut Operational Expense:
Automate calculation agent function based on uniform data feeds (“oracles”), eliminate disputes and discrepancies requiring reconciliation
Limit CVA Charges: Reflect lower counterparty exposure in lower CVA charges, freeing capital and improving hedging efficiency
Improve Auditability: Store fully executed ISDA/CSA agreements on chain; maintain comprehensive, immutable audit trail of all transactions
Features and Benefits
Enable real-time settlement, increase capital velocity, decrease working capital, create new products, reach new buyers, improve execution
Prevent tampering, compliance gaps, third party dependencies, counterparty failures
Golden source of immutable data for any security or financial agreement residing on the network
Privacy model with no central point of failure
Automate workflows, remove intermediaries, eliminate reconciliation