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Dr. Avtar Sehra | Email: [email protected] | Twitter: @avtarsehra

Dr. AvtarSehra | Email: [email protected] | Twitter ... · Dr. AvtarSehra | Email: [email protected] | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

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Page 1: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Dr. Avtar Sehra | Email: [email protected] | Twitter: @avtarsehra

Page 2: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

About N i vau ra

Token i zed Secur i t i es

Fu tu re o f Cap i ta l Marke ts

Page 3: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

About N i vau ra

Page 4: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

4 Confidential – for emailed recipients only, please do not distribute

Philip Smith, Board MemberSenior partner at Allen & Overy advising both lead managers and issuers on international debt capital markets transactions

Alan Morgan, Chairman Senior partner at McKinsey & Co as head of the financial services practice in UK, Europe and the Middle East; and founder of MMC ventures.

Peter Walker, Board MemberBoard Director of Debt & Banking solutions in Capita (now Link) Asset Services

Dr. Avtar Sehra, CEOPhD in Theoretical Particle Physics, and over ten years in investment banking and consulting as a quantitative analyst and risk manager.

Marcello Fiori, CTOComputer scientist and over 18 years experience in design and development of financial technology.

Spencer Lake, Board Member &Commercial AdvisorFormer HSBC Capital Markets Vice Chairman.

Executive board is made of highly experienced leaders, and the core product development team has over 100 years of combined experience in capital markets

Page 5: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Trustee /Fiscal Agent

Registrar / Depositry

(Asset Allocation)

Custody / Paying Agent

(Investment, Coupons and Redemption)

Primary issuance and administration involves a complex set of interconnected manual activities with multiple intermediaries that add to cost and time inefficiencies

Issuing Advisor

Legal Advisor

Company Investors

Broker(Transferable)

= +5 Confidential – for emailed recipients only, please do not distribute

Page 6: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Credit

Communications

Onboarding Documentation Structuring

Term Coordination and Subscriptions

Registry and Settlement

Events and Payments

User Management

Instrument Management

Transaction Management

POWERED BY

KYC/AML TrusteeLegal Clearing

Agent or Bank

The Nivaura platform is a compliant end-to-end automation tool for the Issuance and Administration of financial instruments

Company Investors

SaaS : Secure / compliant cloud based offeringMiFID : Arranging of retail and institutional dealsCASS : Safekeeping of client assets and money

6 Confidential – for emailed recipients only, please do not distribute

Page 7: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Financial Instruments

Legal Contracts

Formation Performance Enforcement

Deep understanding of the “atomic” structure of financial instruments underpins the workflow solution for the issuance and administration life-cycle

Formation of the Deal Structure

LML based legally compliant documents generated, frictionless pricing, distribution and signing

Enforcement by Trusted Parties

Frictionless management of events and triggers that requires independent third party services

Performance to Agreed Terms

Efficient settlement and registration of instruments and ongoing cashflow management

Confidential – for emailed recipients only, please do not distribute7

Page 8: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

World firsts using Nivaura’s automated issuance and administration system

Page 9: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Token i sed Secur i t i es

Page 10: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Issuer NomineeInvestors

Custody

Bond legalownership

under Nominee

Bond Beneficialownership held by

Custodian

Investors hold beneficial ownership

of assets

Registrar

Record of Money Held for Clients

Record of Assets Held for Clients

Client Money

Account

Bond legal ownership independently recorded with Registrar

Money / Asset allocation

Money / Asset Reconciliation

Current model for client asset and money custody

10 Confidential – for emailed recipients only, please do not distribute

Page 11: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Investors

11 Confidential – for emailed recipients only, please do not distribute

IssuerCustody

Client Assets and Keys

Bond Legal &Beneficial ownership

allocated on Blockchain

Investors hold legal and beneficial

ownership of assets

Client Money

Account

Blockchain

Total Issued Assets Recorded on Blockchain

BlockchainTokenised money

ownership allocated on Blockchain for on-chain clearing and settlement

Money / Asset Allocation

Money / Asset Reconciliation

Fiat currency tokenised on blockchain for client asset and money custody

Page 12: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

12 Confidential – for emailed recipients only, please do not distribute

Issuer Blockchain

Total Issued Assets Recorded

on Blockchain

Bond Legal & Beneficialownership allocated on Blockchain settled in Cryptocurrency owned

by Investors

CustodyClient Assets

and Keys

Role of the custodian is to onboard users, assign and manage Keys, and ensure consistency of client’s executions and money / assets held i.e. assets / cryptocurrency held by investors’ private Keys aligns with expectations

Investors

Blockchain

Money / Asset Allocation

Money / Asset Reconciliation

Cryptocurrency denominated issuance, fully cleared and settled on Blockchain

Page 13: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Agent & Custody Bank

International Central Securities Depository

Global Bearer Note Immobilised

Banking Frankfurt

Common Depository Fiat Currency

Dematerialised Note

Fiat Currency

Fiat Currency

Fiat currency

Allocated Note

Dematerialised Note

Issuance and Administration Platform

Structuring and Issuance

Fiat Currency Money Withdrawal

NotesIssued

Fiat Currency

Global Bearer Note

ISIN Allocation

Money and Asset Accounts and Custody

Clearing, Settlement and Custody Service

Investor Management and Execution

Invested Notes

Fiat Currency Money Deposit

Fiat Currency Allocation

Management

Sub-Allocated Notes

Primary Issuance of Structured Note Using Legacy Infrastructure - Control Issuance

Legal Services and Documentation

13 Confidential – for emailed recipients only, please do not distribute

Page 14: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Structuring and Issuance Investor Management and Execution

Fiat Currency Money Withdrawal

NotesIssued

Invested Notes

Fiat Currency Money Deposit

Fiat Currency Tracking

Note Tokenisation

Fiat Currency Deposit and Tokenisation

Allocated Note Tracking

Tokenised Fiat Payment

Signed Tokenised Note Transaction

Tokenised Note Transfer

Signed Tokenised Fiat Transaction

Gross or Net Fiat Currency TransferThis step can be eliminated when payment method is native to

blockchain e.g. cryptocurrency or fiat based settlement coin Client Money Deposit

and Key Custody

Primary Issuance of Structured Note Using Blockchain - Experimental Issuance

Private or Public Blockchain : Decentralised Securities Depositary

Issuance and Administration PlatformLegal Services and Documentation

Client Money Deposit and Key Custody

14 Confidential – for emailed recipients only, please do not distribute

Page 15: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Issuance and Administration Platform

Structuring and Issuance Investor Management and Execution

Fiat Currency Money Withdrawal

NotesIssued

Invested Notes

Fiat Currency Money Deposit

Nivaura’s Platform is About Compliance, Efficiency and Complexity Abstraction

• Operational Data Flow: Tracking all key data at every touch point from the front to back process

• Money and Asset Flow: Tracking and managing allocation of money and assets

• Legal Structuring: Executing deal in a manner that is legally viable for performance and enforcements

• Regulatory Compliance: Alignment of execution with regulatory requirements for arranging and custody

• Commercial Viability: Executions are commercial deals that make sense for issuers, investors and arrangers

Legal Services and Documentation

15 Confidential – for emailed recipients only, please do not distribute

Page 16: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Futu re o f Cap i ta l Marke ts

Page 17: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Separation of legal and beneficial titles and chain of custody

Issuer

Common Depository

Clearstream

Local Custody Local Custody

Investors Investors Investors InvestorsInvestors Investors

Global Note

Dematerialised Note

Investors hold interest in the Notes through a custody chain

Custody chain using traditional clearing system

Direct ownership of assets on the blockchain

Issuer

InvestorsInvestors InvestorsInvestorsInvestors Investors

Legal and Beneficial Title United

Title to assets recorded on the blockchain

Key Custody

17

Page 18: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

Blockchain Infrastructure

Creation of Tokenized Securities and Whitelisting Users

Nivaura Key Custody Engine

Operated by Custodians

Signing

Broadcasting

Nivaura Key Custody Engine

Operated by Custodians

Signing

Broadcasting

18

Nivaura

Platform

Operated by

Dealer/Broker

Primary Issuance Orders Primary Buy Orders

BuyersIssuer

Regulated Trading Venues,

MTF’s, OTF’s or other Dealer

Networks

Sellers Buyers

Secondary Sell Orders Secondary Buy Orders

Nivaura Transaction Engine

Operated by CSD

Matched Order

What could the future of capital markets look like using Blockchain technology?

Page 19: Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter ... · Dr. AvtarSehra | Email: avtar@nivaura.com | Twitter: @avtarsehra. About Nivaura Tokenized Securities Future of Capital Markets

• The information provided by Nivaura in this document (Response) is proprietary and confidential to Nivaura.• Without Nivaura’s prior written permission, our Response, either in whole or in part, must not be reproduced in any form or by any means or disclosed to others or used for purposes other than its evaluation by the intended party. It may not be disclosedto any third party even for the purposes of evaluation, except as expressly authorised by Nivaura in each case.

• Where we have mentioned other Clients or Partners by name we stipulate that no contact be made with any such Client or Partners without the prior approval of Nivaura in each case.• Where this Response makes reference to trademarks that may be owned by others, the use of such trademarks herein is not an assertion of ownership of such trademarks by Nivaura and is not intended to represent or imply the existence of anassociation between Nivaura and the lawful owners of such trademarks.

• This Response and any document to which it is attached is subject to (i) completion of each party’s internal review process and; (ii) subject to contract, where applicable.• Whilst care and attention has been exercised in the preparation of this Response, Nivaura do not accept responsibility for any inaccuracy or error or any action taken in reliance on the information. This Response remains subject to contract and allwarranties whether express or implied by statute, law or otherwise are hereby disclaimed and excluded to the extent permitted at law.

• Any pricing or valuation information provided in this document is provided on a budgetary basis for evaluation purposes only. Any final agreement by the parties on pricing or valuations shall be agreed via an appropriate contract (to be agreed).

© Nivaura 2018

Dr. Avtar Sehra

Email: [email protected]

Tel: +44(0)791 287 4903

Twitter: @avtarsehra