Dutch digital asset exchange One Trading has been granted an Organised Trading Facility (OTF) licence by The Netherlands’ Authority for the Financial Markets (AFM). A press release reveals that this represents two firsts for the firm and the EU region – One Trading is the first crypto company to become a perpetual futures trading venue in the EU, and the first cash-settled perpetuals platform in Europe, including the UK.
In addition, the approval establishes One Trading as a trading venue under the Markets in Financial Instruments Directive (MiFID II), and the only regulated derivatives exchange in Europe that is accessible to retail clients.
The onshoring of crypto derivatives as “traded on a trading venue” instruments enhances the regulatory framework and security for European customers, claims One Trading. It describes its products as the “modern alternative to products provided by traditional futures venues such as the CME or Eurex”.
Challenging norms
The firm’s DLT-based technology allows for product creation and trading without the need for external clearing, making 24/7 real-time settlement of all derivative positions in all markets possible. This “challenges existing financial market infrastructure”, eliminating costly post-trade processes.
Joshua Barracloough, founder and CEO of One Trading says, “With this licence, we are well positioned to introduce new regulated products and offer institutional-grade solutions to all customer types starting with Bitcoin (BTC) and Ethereum (ETH) products where no onshore EU regulated venue currently exists.”
One Trading’s general counsel Mario Hoessl-Neumann adds, “We are not just providing European clients with the first onshore alternative to unregulated exchanges. More fundamentally, we are complementing – and in some important ways replacing – traditional structures for how regulated derivatives such as futures are traded.”
