Is it wise for UK CCPs to clear crypto derivatives?

This year, we’ll see this evolution come to life in the digital asset space as institutional investors feel safe realising the benefits of crypto, while minimising the downside risk. Will Mitting, founder, AcuitiFor Acuiti founderWill Mitting, the report “demonstrates the resilience of the cryptocurrency derivatives market as it recovers from an immensely challenging year. We see this as a bit of halfway house pending further regulatory investigation, perhaps – a way of regulating bitcoin and other cryptocurrencies by banning the most volatile and risky bets, before more investigation and regulation might come in on the assets themselves in the future. Once this has been achieved, we will see an influx in institutional crypto investors as they feel safer gaining exposure to crypto assets without burdening their portfolios with the risks that have plagued retail investors for over a decade.

• We see this as a bit of halfway house pending further regulatory investigation, perhaps – a way of regulating bitcoin and other cryptocurrencies by banning the most volatile and risky bets, before more investigation and regulation might come in on the assets themselves in the future.
• Users can expect safe and stable trading experience on cryptocurrencies like BTC and ETH with more advanced analysis tools for quantitative trading and customised functions.
• Will Mitting, founder of Acuiti.“One result of this was that the quality and sophistication of third-party technologies often lagged the inhouse builds of the early pioneers.
• BingX continues to connect users with expert traders and the platform in a safe and innovative way.
• If you’re not affected by the ban (if you’re a professional, for example) and still can’t go long (open a ‘buy’ position) on a cryptocurrency, the most likely reason is we’ve reached our internal limits on the market, and it’ll be set to ‘unlongable’.

This means you’ll only be able to trade cryptocurrencies through CFDs and spread bets if you’re classified as a professional trader and have an account with our UK office. The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved. Crypto derivatives come into their own because they can help traders protect themselves against volatility in the price of Bitcoin, Ether and other altcoins – irrespective of whether their value rises or falls.

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This response was most notable in an email Changpeng Zhao, CEO of Binance, sent to its platform users in the wake of the collapse, which detailed how the exchange handles deposits and why it can ensure the safety of assets in its custody. According to the latest Acuiti Crypto Derivatives Management Insight report, which is based on a member survey of the 70-strong network, the digital market is making a promising recovery from the disruptions that shook the industry last year. Torstone Technology simplifies the complexities of post-trade, by connecting global financial industry expertise with post-trade technology innovation.

We understand that where consumers have already lost substantial sums in trading in derivative products, they may be reluctant to incur costs effectively seeking to recoup their losses. Where that is the case, we are happy to work on a contingency basis if appropriate and we have connections with third party funders. Currency Com Global LLC is a limited liability company registered in St. Vincent & the Grenadines under company number 1291 LLC 2021 with its registered office at First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent & the Grenadines.

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Acquisition of tokens may lead to complete loss of funds and other objects of civil rights transferred in exchange for tokens (including as a result of token cost volatility; technical failures ; illegal actions, including theft). This article should not be treated as investment advice, and has been written for information purposes only. Will Mitting, founder of Acuiti.“One result of this was https://xcritical.com/ that the quality and sophistication of third-party technologies often lagged the inhouse builds of the early pioneers. Russia is preparing the way for foreign investors to buy Russia’s sovereign debt to “finance some of Russia’s future budget shortfalls,” the UK MOD said. It is the longest bear market since the dotcom crash of 2000 and the sixth-longest since the Wall Street crash of 1929.

Because she locked in the lower price, she makes a total saving of $30,000 when buying the cryptocurrency. Changing Approaches to Crypto Trading Technologyis based on a survey conducted in Q of Acuiti’s What is a crypto derivatives exchange Expert Network and is published today in partnership with Trading Technologies, a global capital markets technology platform provider. Established in 2022,Cerus MarketsLimited is authorized and regulated by the Labuan Financial Service Authority, Malaysia. Cerus is a multi-asset broker that offers over 200 instruments paired with cryptocurrencies through its innovative product – Non-Deliverable Crypto contracts (NDC’s). In short, regulation is a powerful enabler, and there’s little doubt that it will play a seminal role in shaping and accelerating institutional adoption of crypto derivatives this year.

The Cryptocurrency Derivatives Market Is Ready for Life Beyond FTX Debacle

That said, while the crypto market has largely been an arena for retail investors looking to make a quick buck, the tide is changing this year as institutional investors seek more exposure to the nascent sector. Duke cited the example of FTX, one of the largest exchanges for cryptocurrencies in the world, which filed for bankruptcy last year leaving investors trapped. Counterparty risk was highlighted as a key concern from surveyed participants, with 47% saying that they were concerned with this risk factor compared to 31% for operational risk, 13% for liquidity risk and only 6% for market risk. If you’re not affected by the ban (if you’re a professional, for example) and still can’t go long (open a ‘buy’ position) on a cryptocurrency, the most likely reason is we’ve reached our internal limits on the market, and it’ll be set to ‘unlongable’. This means we won’t be able to accept any new long trades, either by phone or online – but you’ll still be able to close existing positions.

As indicated in our Feedback Statement on DLT, cryptocurrencies are not currently regulated by the FCA provided they are not part of other regulated products or services. MT5 is a popular trading platform used to trade financial instruments such as stocks, currencies, commodities, and cryptocurrencies. It is an upgraded version of the MetaTrader 4 platform, which is widely used by most organisations currently. MT5 offers advanced features such as more technical indicators, depth of market , and the ability to trade on multiple exchanges.