DelphX is an innovation leader launching an Alternative Trading System (ATS) dedicated to streamlining credit capital formation, broadly diffusing default risk and enhancing investor yield. Offering participants a regulated securities-based alternative to single-name CDS, DelphX will employ its proprietary Quantem™ distributed ledger and risk-diffusion technologies to enable participants to anonymously negotiate, originate, purchase and trade the following new forms of Smart Securities:
• Covered Put Options (CPOs) that provide secured default protection for any of millions of underlying corporate, municipal and sovereign credit instruments; and
• Covered Reference Notes (CRNs) that pay enhanced yields to credit investors willing to participate in a pool of diverse risks that broadly diffuses the impact of credit events among all participants, and produces increasingly predictable mean exposures.
DelphX participants can also cost-effectively speculate on the future pricing of default protection for any underlying security, and exercise any CPO in either a physical or cash settlement transaction.