FalconX launches Crypto swaps, options, and NDFs settled against CF Benchmarks rates

Rick Steves

“Regulated derivatives are critical instruments for institutional investors to safely access digital assets. We are proud to be able to deliver the industry’s best in class regulated derivatives offering – purpose built for the world’s leading institutional investors.”

Digital asset prime broker FalconX is releasing the only crypto derivatives offered by a CFTC-regulated swaps dealer, with contracts settled against indices administered by CF Benchmarks, the FCA-regulated cryptocurrency index provider.

The contracts offer regulated access to the crypto derivatives market, via swaps, options, and non-deliverable forwards (NDFs) that settle to single asset reference rates provided by CF Benchmarks.

Crypto derivatives via swaps, options, and NDFs

The contracts provide exposure to bitcoin settled against the CME CF Bitcoin Reference Rate, and to ether settled against the CME CF Ether-Dollar Reference Rate. FalconX is also offering a range of derivatives products, settled against regulated CF Benchmarks single asset reference rates, so clients can gain exposure to other leading cryptocurrencies.

CF Benchmarks’s indices have settled the regulated crypto derivatives contracts from CME since its launch in 2017. FalconX will use the same spot reference source so that clients can tap into the liquidity complex around the CME CF BRR, which includes the most liquid regulated instruments such as the CME crypto futures and ETFs listed in multiple jurisdictions.

By offering a suite of benchmarked derivatives contracts, FalconX and CF Benchmarks are addressing the growing demand for secure and transparent investment products in the rapidly expanding digital asset space.

“Regulated derivatives are critical instruments for institutional investors”

Sui Chung, CEO of CF Benchmarks, commented: “Derivatives benchmarked against resilient and regulated indices are the primary route institutions take to gain exposure to the crypto asset class. We are delighted that FalconX will provide exposure to a host of digital assets through our market-leading benchmarks, including the CME CF BRR. This will encourage further activity in the fastest-growing area of institutional finance today.”

Baris Cetinok, Chief Product Officer of FalconX, said: “Regulated derivatives are critical instruments for institutional investors to safely access digital assets. We are proud to be able to deliver the industry’s best in class regulated derivatives offering – purpose built for the world’s leading institutional investors.”

Institutional investors can gain exposure to cryptocurrencies, knowing they are backed by a regulated and reliable infrastructure. The integration of these benchmark indices into FalconX’s offerings will enable clients to efficiently manage risk and seize opportunities in the burgeoning world of digital finance.

FalconX is a prime broker specialized in digital assets. The firm provides deep liquidity through its prime brokerage platform, FalconX 360, with a 24/7 dedicated team for account, operational, and trading needs.

The prime broker is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management and Wellington Management.

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