FX Market and OTC Derivatives

Market Problem

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

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Features and Benefits

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Unlock capital

Enable real-time settlement, increase capital velocity, decrease working capital, create new products, reach new buyers, improve execution

Reduce risk

Prevent tampering, compliance gaps, third party dependencies, counterparty failures

Ensure accuracy

Golden source of immutable data for any security or financial agreement residing on the network

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Increase security

Privacy model with no central point of failure

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Cut costs

Automate workflows, remove intermediaries, eliminate reconciliation