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Dutch Exchange D2X Brings Institutional Crypto Derivatives Trading to Europe with Regulated Options and Futures on BTC-EUR and ETH-EUR Markets.

Summary

D2X, an Amsterdam-based cryptocurrency derivatives exchange backed by Point72 Ventures, has launched with institutional market participants including Flow Traders, Basis Capital Markets, and Algorithmic Trading Group. The exchange is licensed by the Dutch Authority for the Financial Markets (AFM) and offers 7-days-a-week trading in cash-settled BTC-EUR and ETH-EUR Calendar Futures. Future plans include USD-denominated Calendar Futures & Options scheduled for early 2025.

Main Content

D2X’s Launch: A New Era for Crypto Derivatives

Amsterdam-based D2X, a cryptocurrency derivatives exchange backed by hedge fund giant Steve Cohen’s Point72 Ventures, has gone live with institutional market participants Flow Traders, Basis Capital Markets and Algorithmic Trading Group. This significant development marks a major milestone in the growth of the crypto derivatives market.

According to Theodore Rozencwajg, D2X cofounder, "The dilemma today is you have to pick between seven days a week or regulatory compliance in the end." The ambition behind D2X was to be the first crypto derivatives exchange where institutions will be able to trade seven days a week and on a venue that’s regulated in a tier one jurisdiction.

D2X CEO Frederic Colette emphasized the fact that cash is accepted as collateral and interest is returned to the client via the exchange’s banking partner. "This is something that you don’t get usually in unregulated exchanges, because they use crypto assets, so stable coins, usually," Colette said in an interview. "With D2X, our clients will deposit euros and they will get remuneration."

The Importance of Regulation in Crypto Derivatives

Regulation is a crucial aspect of the growth and development of the crypto derivatives market. Unlike traditional markets, where regulation provides a sense of security and stability for investors, the crypto market has historically been plagued by regulatory uncertainty.

However, with the launch of D2X, institutions now have access to a regulated platform that offers 7-days-a-week trading in cash-settled BTC-EUR and ETH-EUR Calendar Futures. This is a significant departure from the current state of the market, where crypto-native exchanges often prioritize speed and convenience over regulatory compliance.

Benefits of D2X’s Post-Trade Model

D2X’s post-trade model includes cash collateral management services in partnership with a tier-1 EU credit institution. This unique approach provides several benefits for institutional investors, including:

  • Cash acceptance as collateral: Unlike unregulated exchanges that use crypto assets or stablecoins, D2X allows clients to deposit euros and receive remuneration.
  • Interest returns on cash deposits: Clients can earn interest on their deposited funds, providing a additional source of revenue.
  • Regulatory compliance: By partnering with a tier-1 EU credit institution, D2X ensures that its platform is compliant with regulatory requirements.

Future Plans for D2X

In the coming months and years, D2X plans to expand its offerings to include USD-denominated Calendar Futures & Options. According to Colette, "We are committed to delivering a robust and efficient trading experience to our clients." The exchange aims to become a leading platform for institutional investors in the crypto derivatives market.

Conclusion

D2X’s launch marks an important milestone in the growth of the crypto derivatives market. By providing a regulated platform with 7-days-a-week trading, D2X is poised to become a leader in the industry. With its unique post-trade model and commitment to regulatory compliance, D2X is well-positioned to meet the needs of institutional investors in the years to come.

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