Digital Assets Trading & Custody

otcDigital addresses the new digital asset class with a unique trade execution and custody platform that caters to both sell side and buy side.

Trade Execution Features

  • Digital assets market data and aggregation
  • Multi-tenant cloud Order Management System (OMS)
  • Exchange order execution through FIX/REST/websockets
  • Direct/Agency/Broker execution solutions

Custody Features

  • Digital wallets: simple, web, HD multi-sig, MPC
  • Digital asset movement
  • Agency desk solutions for custody

DLT Platform

otcDigital has significantly upgraded its OTC Derivatives platform to meet the needs and challenges of a digital ledger solution. The platform already addresses the buyside to sellside interactions via direct and agency solutions running in a secure cloud infrastructure. To address the common objective of shared immutable and peer-to-peer ledgers, SwapsHub has introduced ISDA CDM based middleware with a feature-set that includes:

Pre-trade Features

  • Distributed RFQ Protocol (DFRQ): Only the two parties of a bilateral negotiation know about the price. Since there are no intermediaries involved, confidfential pricing is achieved
  • All DFRQ trade negotiations use standard ISDA CDM data and process standards
  • All DRFQ workflows are recorded with detailed audit trails
  • DFRQ is an ideal protocol for D2C digital networks
  • DFRQ can be applied to uncleared and non-sef mandated cleared trades
  • Capturing a finalized trade (as the single source of truth) results in a golden record for the entire life cycle between the parties
  • The platform also enables confidential communications including chat and voice.All such communications are recorded in the digital ledger with tags attributed to a trade, portfolio or any other characteristic

Trade Features

  • Peer-to-Peer Trade Matching workflows and corresponding audit trails
  • All trade matching messages use standard ISDA CDM
  • End users finally have full access and control over all data and not the vendor
  • Initial trade types: IRD, CDS, Digital assets derivatives

Post-trade Features

  • Independent bilateral counterparty level life cycle management (ex: resets, corporate actions) using scalable cloud infrastructure
  • Digital margin calls and workflows
  • Collateral management with digital assets and realtime settlement

OTC Derivatives

For OTC derivatives participants, transitioning from a bilateral world to an all electronic execution and clearing world is challenging at the very least – until now. To meet the global regulations, SwapsHub provides an integrated cloud based trading platform built on 3 main principles:

Best Clearing​

Optimal clearing path for a portfolio based on IM, credit and collateral

Best Execution

SEF aggregation, execution using RFQ/CLOB, Swap Terminations, allocations

Best Collateral

Margin call aggregation, collateral pool and management tools

Pre-trade Features

  • Margin Optimizer: Optimal clearing path IM calculator (x CCPs, y FCMSs=xy clearing paths)
  • Transaction Cost Analysis (TCA): CCP Spread, CCP/FCM Fees, Collateral Funding costs etc
  • Off SEF clearable swaps IM
  • IM for a list of swaps, block allocation etc
  • Clearing certainty (single trade, block and allocation level)
  • Single trade or flexible portfolio level CCP/FCM porting analysis
  • Compliance: Clearing, MAT, Jurisdictions, Fund rules

Trade Execution Features

  • SEF market data and aggregation
  • Derivatives Order Management System (OMS)
  • Full support for RFQ and CLOB
  • Swap Termination handling by creating equal and opposite structures
  • Trade Booking and management for Cleared, Bilateral and Inter-affiliate trades
  • Control and Verification: Trade Workflows, Division of Labor

Collateral Management Features

  • Margin Call aggregation: CCP feeds, FCM, Bilateral, Internal
  • Integrated call management for bilateral and cleared calls
  • ISDA best practices based workflows
  • Call verification: independent IM/VM verification
  • Static data management: CSA, clearing agreements, haircuts, collateral accounts, standard settlement instructions (SSI)
  • Mobility/Visibility: Collateral pledges, movement tracking
  • Collateral Optimization using Linear Programming (LP) techniques taking into account of restrictions, concentration limits, rankings etc

Post-trade Features

  • Real time portfolio aggregation
  • Ful life cycle management: resets, corporate actions etc