Clearing And Settlement
DMALINK is based on a central clearing model to establish an even playing field for buy side and sell side participants.
:: Anonymity leading to better price discovery
:: Deep liquidity ensuring tight spreads and optimal fill rates
:: Risk offset as deposits are posted with the PB or central clearer ensuring security of funds
:: One credit line provides access to multiple liquidity pools leaving the client with freed up capital
In detail, the DMALINK CCP agency model entails the following characteristics:
Primer Brokers and liquidity providers extend credit to the CCP, the DMALINK clearing entity who faces all trades. The PB sees the DMALINK CCP as their counterparty on every trade. PBs also extend credit to their client directly.
All counterparties face the participants that they have a direct credit relationship with resulting in an anonymous model.
The trade notifications route is conducted via Traiana integration, or other post trade notification systems.