To provide a new platform
TP ICAP, one of the world’s leading inter-dealer brokers (IDB), announced on the 29th that it will launch a crypto asset (cryptocurrency) trading platform for institutional investors in the latter half of 2021 in collaboration with Fidelity and Zodia Custody. did. Reuters reported.
TP ICAP is a major UK IDB. Since 2019, it has been offering Bitcoin (BTC) futures trading on the CME (Chicago Mercantile Exchange), but this time it has collaborated with Fidelity Investments, Standard Chartered Bank and Northern Trust’s Digital Assets Division. It was revealed that a platform for cryptocurrency trading for institutional investors will be released within the year.
Reuters reports that it is currently awaiting approval from the UK financial authorities.
What is an Inter-Dealer Broker (IDB)?
A broker specializing in financial products that handles over-the-counter derivatives traded through specialized traders.
▶ ️ Cryptocurrency Glossary
The platform, which will be released in the latter half of 2009, will diversify risks by processing custody services and payment services in different departments, and will provide institutional investors with a user experience similar to trading stocks, bonds, FX, etc. .. Amsterdam-based Flow Traders is expected to provide liquidity.
Duncan Trenholme, co-head of ICAP’s Digital Assets division, told Reuters:
Over the last six months to eight months, investor interest in this new asset class has increased dramatically.
Through repeated dialogues with customers, it was found that a model that separates the custody function and the (transaction) execution function, which is the opposite of the existing model, is desired.
It will offer Bitcoin trading immediately after launch, but plans to handle Ethereum (ETH) in the long run. It also expects to offer cryptocurrency derivatives such as total return swap (TRS) and non-deliverable forward (NDF).
What is NDF (Non-deliverable Forward)?
NDF is a type of derivative product. The difference between the predetermined transaction price and the actual price at the time of settlement is settled in cash. Similar to futures trading, but does not deliver in-kind.
▶ ️ Cryptocurrency Glossary
Cryptocurrency trading for institutional investors
Standard Chartered Bank announced the launch of an exchange service for European institutional investors in early June. It was planned to establish a joint venture in the UK by April 2009 in partnership with BC Group, which operates the virtual currency exchange OSL in Hong Kong.
Also in May, financial giant Goldman Sachs was found to offer NDF trading based on Bitcoin futures.
Relation:Entering Bitcoin-related services one after another, summary of notable “institutional investors” trends
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“Cryptocurrency” means “cryptographic assets”