DelphX Engages ICP Securities Inc. for Automated Market Making Services

Rhea-AI Summary

DelphX Capital Markets has engaged ICP Securities for automated market making services, utilizing ICP's proprietary algorithm, ICP Premium™, compliant with TSX Venture Exchange and other regulations. ICP will receive C$7,500 monthly, paid in advance. The agreement covers an initial four-month term, with automatic monthly renewals unless a 30-day notice is provided. No performance factors, stock options, or other compensation are included. ICP's activities aim to correct imbalances in the supply and demand of DelphX shares, and it will bear its own trading costs. ICP is an arm's length party specializing in liquidity provision and automated market making, established in 2023.

Positive

• Engagement of ICP Securities for automated market making could improve liquidity and quote health for DelphX shares.
• Monthly fee of C$7,500 is a fixed, predictable expense.
• No stock options or other additional compensations involved, minimizing dilution risk for existing shareholders.
• ICP's proprietary algorithm, ICP Premium™, may enhance trading efficiency and correct temporary imbalances in share supply and demand.

Negative

• The agreement does not include performance factors, which may result in less accountability for market making effectiveness.
• The C$7,500 monthly fee could accumulate to a significant expense over time without guaranteed performance benefits.
• Automatic renewals could lock the company into ongoing costs if not actively managed.

Toronto, Ontario--(Newsfile Corp. - May 16, 2024) - DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) ("DelphX" or the "Company"), a leader in the development of new classes of structured products for the fixed income market, is pleased to announce that it has engaged the services of ICP Securities Inc. ("ICP") to provide automated market making services, including use of its proprietary algorithm, ICP Premium™, in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable legislation. ICP will receive a fee of C$7,500 plus applicable taxes per month, payable monthly in advance. The agreement between the Company and ICP is for an Initial Term of four (4) months and shall be automatically renewed for subsequent one (1) month terms (each month called an "Additional Term") unless either party provides at least thirty (30) days written notice prior to the end of the Initial Term or an Additional Term, as applicable. There are no performance factors contained in the agreement and no stock options or other compensation are being granted in connection with the engagement. ICP and its clients may acquire an interest in the securities of the Company in the future.

ICP is an arm's length party to the Company. ICP's market making activity will be primarily to correct temporary imbalances in the supply and demand of the Company's shares. ICP will be responsible for the costs it incurs in buying and selling the Company's shares, and no third party will be providing funds or securities for the market making activities.

ICP Securities Inc.

ICP Securities Inc. (ICP) is a Toronto based CIRO dealer-member that specializes in automated market making and liquidity provision, as well as having a proprietary market making algorithm, ICP Premium™, that enhances liquidity and quote health. Established in 2023, with a focus on market structure, execution, and trading, ICP has leveraged its own proprietary technology to deliver high quality liquidity provision and execution services to a broad array of public issuers and institutional investors.

About DelphX Capital Markets Inc.

DelphX is a technology and financial services company focused on developing and distributing the next generation of structured products. Through its special purpose vehicle Quantem LLC, the Company enables fixed income dealers to offer new private placement securities that optimally transfer and diffuse credit risk, while allowing the enhancement of yield. The new DelphX securities will enable dealers and their qualified institutional investors (QIBs) accounts to competitively structure, sell and make markets in:

• Collateralized put options (CPOs) that provide secured default protection or rating downgrade protection for underlying corporate, municipal and sovereign securities;

• Collateralized reference notes (CRNs) that enable credit investors to take on the default or rating downgrade exposure of an underlying security in exchange for enhanced yield.

All CPOs and CRNs are fully collateralized and held in custody by BNY Mellon. CPOs and CRNs are proprietary products created and owned by DelphX Capital Markets.

For more information about DelphX, please visit www.delphx.com.

Patrick Wood, Chief Executive Officer
DelphX Capital Markets Inc.
patrick.wood@delphx.com

Mark Forney, Corporate Development
DelphX Capital Markets Inc.
mark.forney@delphx.com

(718) 509-2160

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/209360

FAQ

What is the purpose of DelphX engaging ICP Securities?

DelphX engaged ICP Securities to provide automated market making services to enhance liquidity and correct imbalances in the supply and demand of its shares.

How much will DelphX pay ICP Securities for market making services?

DelphX will pay ICP Securities C$7,500 monthly, in advance.

What is the duration of the agreement between DelphX and ICP Securities?

The initial term of the agreement is four months, with automatic monthly renewals unless a 30-day notice is provided.

Will ICP Securities receive any stock options under the agreement with DelphX?

No, ICP Securities will not receive any stock options or other compensation under the agreement.

What algorithm will ICP Securities use for DelphX's market making?

ICP Securities will use its proprietary algorithm, ICP Premium™, for DelphX's market making.