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New Ethereum-Based Derivatives Trading Platform Wins EU's MIFID License
CloseCross claims this is the first such license to be granted to a blockchain-based derivatives trading platform.
Updated Sep 14, 2021, 12:19 p.m. Published Mar 2, 2021, 1:35 p.m.
CloseCross, a derivatives trading platform built on the Ethereum blockchain, has been granted a European Union MIFID license ahead of its market launch later this month.
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According to an announcement emailed to CoinDesk on Tuesday, this is the first time the license has been granted to a blockchain-based derivatives trading platform.
When live, CloseCross will offer multiparty derivative contracts for global stock market indices, cryptocurrency, forex rates, commodities, stock prices, interest rates and others.
The company said it developed and patented its platform, on which traders can enter derivative contracts "without the need of major banks issuing derivatives or having to take on leverage."
See also: UK Broker IG Group Stops Retail Crypto Derivatives Trades After FCA Ban
The Ethereum blockchain provided CloseCross with the tech base to "entirely automate the derivatives sector and replace the centralized derivative issuers entirely", Vabihav Kadikar, CEO of the London and Malta-based company, told CoinDesk.
Kadikar also cited the importance of "creating an immutable trust layer" through smart contracts in the automated calculations and fund flows when multiple traders are entering into a single multiparty derivative contract.
The EU's second Markets in Financial Instruments Directive, or MIFID II, is designed to increase protection for investors through adding greater transparency to costs and record keeping in over-the-counter (OTC) trading.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
Ano ang dapat malaman:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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