Exchange technology specialist Exberry, Digital Asset, creator of the open source Daml shared ledger development framework, and Baymarkets, developer of the Clara clearing system, have teamed up to create an exchange infrastructure with central counterparty clearing functionality.
This partnership will enable new digital asset marketplaces to launch on a fully-compliant, end-to-end exchange platform encompassing registry, custody, trading, matching and clearing services.
In August 2020, Digital Asset and Exberry launched an end-to-end exchange infrastructure-as-a-service for modern markets, including digital assets. The updated end-to-end exchange architecture now features Clara, the multi-asset clearing system from Baymarkets, to execute clearing and calculate margin and collateral requirements for spot and derivatives markets. With Clara, the combined solution enables efficient margin management, automatic mark to market payments, and clearing capabilities that significantly reduces the need for capital for market participants.
“Clara is a tried and true, innovative clearing system from Baymarkets that brings tremendous value to this joint platform,” says Eric Saraniecki, co-founder of Digital Asset. “Adding real time clearing mechanisms for digitised assets will infuse greater confidence in these new asset classes, facilitating trusted trading across global markets. We are excited to have Baymarkets onboard and we look forward to our continued work with Exberry and other partners as we expand the platform offering.”
Magnus Almqvist, Head of Exchange Development at Exberry, says: “Innovative and fast growing tokenized markets often come with a perception of uncertainty and risk. Anyone looking to take advantage of them and the latest technologies are also looking for the safety, security and maturity expected by experienced market participants. The combined expertise of Exberry, Digital Asset and Baymarkets bridges that gap and provides a solid foundation to explore these new opportunities.”
The three main components of the exchange infrastructure include a matching engine to run the exchange provided by Exberry. Digital Asset’s project:DABL (Daml-as-a-service platform) fuels the CSD and registry functions via Daml code and integrations on the DABL platform. The CSD and registry functions include the tokenisation of assets, the onboarding and management of users, and the automatic settlement of trades and cash management as instructed by the Clara clearing system. And, Baymarkets, with a well-established clearing product, brings the necessary functionality to support a true end-to-end exchange experience for new digital financial assets.
Peter Fredriksson, Baymarkets Chairman of the Board, says: “Having a CCP solution as part of the ecosystem adds efficiency of trade and settlement processing, credit risk mitigation and trust for the digital asset marketplace. We are really excited about working with Digital Asset and Exberry, two world-class companies with a bright future, and together we look forward to make a difference for the international financial markets.”
In addition to clearing, the group is exploring other critical components, such as cash payments, regulatory reporting, tax reporting, and more services, that could be added to the platform. It is currently available for demo and purchase.
