Elwood secures Jersey’s JFSC license to operate security tokens and derivatives

Rick Steves

“This step is an essential milestone in bringing the same regulatory expectations of our clients in traditional asset classes to digital assets.”

Elwood Capital Management Limited has successfully obtained an Investment Business license from the Jersey Financial Services Commission (JFSC).

The OTC Desk for institutional access to digital asset markets can now provide trading in security tokens and derivatives, in addition to non-securities, under Elwood Capital Management Limited’s Virtual Asset Service Provider (‘VASP’) Schedule 2 Registration.

“Bringing the same regulatory expectations of our clients in traditional asset classes to digital assets”

According to the firm, this is the first Investment Business license granted to a native digital asset business in Jersey. The JFSC evaluates and monitors businesses operating within the Jersey financial service market.

Trading in security tokens and/ or derivatives, however, is available only to institutional clients that are non-U.S. persons located outside of the United States.

Oliver Butlin, Director & Global Head of Trading at Elwood, said, “We are incredibly proud of the Elwood team working with the Jersey Financial Services Commission to secure this Investment Business license. This step is an essential milestone in bringing the same regulatory expectations of our clients in traditional asset classes to digital assets.”

Elwood integrated Fireblocks

Elwood has recently integrated Fireblocks to enhance the portfolio management system experience for clients, providing users with a comprehensive view of their current and historical digital asset positions across all venues.

The integration connects Fireblocks’ digital asset custody, transfer, and settlement technology to the London-based provider of end-to-end OEMS and PMS digital asset platforms.

The deployment is intended to further streamline the ability for clients to seamlessly view their movements and balances on Fireblocks directly on Elwood’s portfolio management system. The firms have plans to further integrate Elwood’s order execution management system.

Elwood launched advanced Risk Management tools

The integration of Fireblocks into Elwood’s institutional platform comes on the heels of the latter’s rollout of several advanced Risk Management tools, further improving institutional investors’ digital asset management experience.

The advanced Risk Management Technology already deployed across select institutional Elwood clients provides significant new functionality within the PMS, offering clients the tools to perform Live Position and Exposure tracking, Advanced Risk Analytics, Reporting and Collateral Monitoring.

The Live Position and Exposure tracking feature combines all CeFi, OTC, and DeFi exposures in a single dashboard and details Live PnL and Risk (first and second order) per portfolio across all venues. The Advanced Risk Analytics tool, built on top of 20-year battle-tested quant models, provides a derivative valuation tool and the ability for clients to perform Scenario Analysis by simulating the portfolio’s spot and volatility shocks.

The reporting tool offers daily risk, P&L and accounting reports, including VaR calculation and What-If scenarios. Finally, the Collateral Monitoring tool allows users to monitor margin across all exchanges and set bespoke limits and alerts.

Elwood provides connectivity to international crypto exchanges, risk management and reconciliation tooling, and market data.

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