DΣLPHX
Global Data & Exchange Network
The Regulated Market for Offering, Analysis, Sale and Trading of
Asset-Backed Securities, Derivatives and Microfinance Instruments
SECURITIZATION 2.0 SM
Patents Pending

Overview
Traditional securitization methods have proven ineffective
Originators held no responsibility for their underwriting decisions and
asset managers had little incentive to promote investor yield
Lack of detailed and ongoing asset and cash flow data limited effective
valuation, hedging and trading of ABS and derivative instruments
Static rating agency assessments at origination held little subsequent
relevance, and the closed non-transparent structure of OTC markets
hampered efficient price discovery, liquidity and regulation
As a result, investors have lost confidence in securitization and the SEC
proposes to require ongoing disclosure of detailed asset-level information
and experience for all publically-offered ABS and derivative issues
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Patents Pending

A Global Need
The IMF warns that “Failure to restart securitization would come at the cost
of prolonged bank funding pressures and a diminution of credit, and a
continuing need for central banks and governments to take up the slack”
It further cautions that the prior shortcomings of securitization must soon be
overcome by -
1) Reducing reliance on rating agencies and rating-related regulation
2) Improving securitization disclosure and transparency standards
3) Providing incentives that base securitizer compensation on longer-
term product performance
4) Simplifying and standardizing securitization products to improve
liquidity, and reduce valuation and risk-management challenges
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Patents Pending

Regulation AB Revision
The SEC has proposed significant revisions to Regulation AB and other rules
regarding offering, information disclosure and ongoing reporting of asset-
backed securities and derivative instruments. Those proposed revisions would
require issuers/sponsors to:
Retain a portion of each publically offered tranche and file ongoing
Exchange Act reports while those securities are outstanding
File prospectuses and reports containing thorough and continually
updating information regarding every asset underlying a publically offered
issue, in a standardized and tagged data format within the EDGAR system
Also file and update for each such issue a companion computer program
of contractual cash flow provisions, expressed as downloadable source
code in an open and interpretive programming language
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Patents Pending

A Private Market Solution
DelphX, an SEC-regulated ATS dedicated to the transparent offering, analyses,
valuation, sale, reporting and liquid secondary trading of ABS, derivatives and
microfinance instruments, will provide all market participants dynamic real-time
access to:
All asset and ABS documentation, data and cash flow projections stored in
EDGAR and elsewhere, organized in a standardized user-friendly format
Integrated third-party rating, analytic and valuation tools to process that
information with all current and historical DelphX market data, to
independently and collectively assess the quality and value of every issue
Competitive when-issued and secondary trading of all new and
outstanding public issues in a regulated, transparent and global market
All currently executable orders and detailed trade reporting, with all
transactions clearing through a common neutral counterparty
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Patents Pending

Features
One-Stop Utility – Continually updating data and cash flow projections,
independent rating, analytics and valuation tools, and real-time market
pricing and trading are combined in a single SEC-regulated forum
Assured Best Execution – Global online access, competitive bidding, full
asset/order/trade transparency and low fixed transaction costs assure both
sponsors and investors execute every transaction at the assured best price
Guaranteed Liquidity – Every new issue incorporating a “T30” liquidity
feature and publically traded on DelphX is guaranteed to trade in sufficient
volume and frequency to maintain its Topic 820 Level 1 classification
Regulatory Surveillance – Global transparency of all data displayed in
real-time on DelphX accommodates comprehensive regulatory surveillance
of all asset, portfolio, securities, transaction and counterparty information
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Patents Pending

Elements
Document / Data Market Analysis,
Analysis & Download Participants Sales & Trading
Data Exchange
Description Updated Description Updated
Narrative Description of Issue Monthly Order & Trade Display Real-Time
Original Asset Documentation Static Order Entry/Change/Cancel Real-Time
Original Issue Documentation Static Ownership Statistics Real-Time
Portfolio Performance Detail Real-Time Aggregate Transaction Data Real-Time
Issuer/Servicer/Rating Updates Real-Time Delphi Heat-Mapping Real-Time
DelphX Market Data Real-Time Historical Asset/Price Trending Real-Time
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Patents Pending

When-Issued Trading
Detailed Asset / Issue
ISSUERS Data & Projections EDGAR
Asset / Issue
Details
Real-Time
Monitoring
DΣLPHX
Anonymous Bids Asset / Issue Analyses
Acceptances / Counters / Offers Bids / Offers / Counters Participants
Matched
Purchase & Sale
Transactions
Sale Purchase
Clearance Clearance
& Clearing &
Settlement Settlement
Counterparty
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Patents Pending

T30 Trading
ISSUER Required
Net T30 Fill
Pro Rata Sale
(Call) Proceeds
Current
DΣLPHX
Auction Bids Other
Auction Bids
Holders T30 Fills Participants
Matched
Bid / Fill
Transactions
Purchase
Clearance
Clearing &
Sale Clearance & Settlement Settlement
Counterparty
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Patents Pending

Benefits
Primary and secondary ABS, derivatives and microfinance markets
expand to include transparent SEC-regulated offering, sales and trading
Typically illiquid ABS and derivative securities can be structured to
become guaranteed-liquid Topic 820 Level 1 investments
Continuous rating updates and full asset/market transparency foster
restored investor confidence and capital flows to credit markets
Increased transparency, liquidity and variety of issues and asset classes
promote efficient risk-management and real-time portfolio adjustments
Comprehensive regulatory surveillance of all ownership, transaction,
market and counterparty information mitigates abuse and systemic risk
Market participants execute every transaction at the assured best price
10
Patents Pending

Learn More…
For additional DelphX or Securitization 2.0SM information,
Please contact:
DelphX Support
5 Great Valley Parkway
Malvern, PA 19355
610-640-7546
support@delphx.com
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Patents Pending