Smart Derivative Contract Clearing

Understand your brokers’ constraints and get access to balance sheet at a better price. Optimize your OTC portfolio at the edge of central clearing and bilateral margining. Achieve regulatory compliance with minimal ongoing overheads. SDCC acts as a calculation agent and can be recognized as a DeFi CCP (Central Counterparty).

The Smart Derivative Contract: A Game-Changer

Innovation in Settlement

Unlike traditional OTC derivatives, SDCs introduce intra-day settlement of cashflows and margin. This reduces Initial Margin and regulatory capital requirements to near zero, offering significant cost savings.

Automated Default Management

SDCs have a deterministic termination mechanism. This automatic termination embedded within the smart contract replaces counterparty default with an option, streamlining the process and reducing inefficiencies.

Years in the Making

The SDC isn’t a mere concept. It a product of over 3 years of meticulous development, ready to redefine the OTC derivative landscape.

Key Benefits

  • Drastic reduction in collateralized OTC derivative transaction inefficiencies.
  • A modern solution to counterparty defaults, ensuring smoother and more secure trades.
 

Opportunity Highlights

Smart Derivatives Contracts – solution using SDCC calculation agent. Conceived and developed over 3 years – now ready for deployment in 6 months or less.

Partnership with DTCC to provide delegated reporting to meet new requirements (SFTR, EMIR etc).

For your capital markets 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 SDCC cures issues in xVAs.

The world’s first productive interest rate swap was conducted in June 2021 with DZ BANK AG.

For more information follow the external links.

Professional Media

Pilot Client and Partner

Christian Fries, Peter Kohl-Landgraf Jens Friedrich

German Press

Dirk Elsner

Legal Framework

Master Agreement

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