SFOX matched, executed, and cleared its first crypto NDF transaction

Rick Steves

Crypto NDFs permit financial institutions to gain exposure to the $3 trillion crypto markets until greater regulatory clarity is provided. 

SFOX has matched, executed, and cleared a crypto NDF contract between B2C2 and an undisclosed financial institution over its multi-dealer network.

The digital asset prime dealer that unites liquidity from 30+ global exchanges and OTC desks in one platform to power trading at scale claims it is the first multi-dealer platform to execute an NDF trade.

Multi-dealer platform for NDFs

Robert Catalanello, Co-CEO of B2C2, said: “We are thrilled that SFOX is the first central intermediary to an NDF crypto contract transaction. SFOX is unique in its ability to match, execute, and clear the new crypto derivative contract over its multi-dealer network. This marks a milestone in crypto’s acceptance by mainstream financial institutions.”

Shawn Egger, Global Head of Execution at SFOX, commented: “SFOX has created a digital nexus for financial institutions to access connectivity to the deepest pools of crypto liquidity including our newly launched crypto NDF orderbook.”

George Melika, CEO and co-founder at SFOX, added: “NDFs are the first derivatives instrument for SFOX, and we have a robust plan to launch a full suite of derivatives and DeFi products in 2022. This is just the beginning.”

Chris Dick, Senior Quantitative Trader for B2C2, said: “As the leader in true principal at risk liquidity provision in the crypto market we look forward to working with SFOX to help institutional investors access our global liquidity and grow the asset class.”

A non-deliverable forward (NDF) is a cash-settled, and usually short-term, forward contract. Crypto NDFs permit financial institutions to gain exposure to the $3 trillion crypto markets until greater regulatory clarity is provided.

SFOX, a native crypto spot participant and prime dealer, is establishing an ecosystem where buyers and sellers can match their interests either on a fully disclosed basis or anonymously both in spot and derivatives.

SFOX has recently joined ISDA, the International Swaps and Derivatives Association, as the third native cryptocurrency company,

Crypto trading for hedge funds and asset managers

SFOX, which stands for San Francisco Open Exchange, has introduced a cryptocurrency trading product built specifically for hedge funds and asset managers.

SFOX states that hedge funds will be able to execute sophisticated trading strategies at scale, with best price execution through deep global liquidity, advanced order types and execution algorithms, treasury management, and detailed trade analytics with flexible settlement.

The cryptocurrency venue provides access to major trading platforms, including major exchanges, OTC brokers, and market makers. This gives hedge funds an edge across the highest priority trading areas: better pricing, enhanced access, and security.

SFOX also offers more than a dozen plug and play order types and execution algorithms to provide traders with complete control over how passively or aggressively they execute and how much information they are giving to the market, as well as risk management.

The firm is introducing a proprietary Trade Cost Analysis (TCA) program integrated into its crypto trading platform and at no additional cost.

TCA capabilities enable Funds to meet and implement best price execution requirements in crypto. That way they can demonstrate to clients and regulators that they are making their best effort to acquire assets for clients at the best price.

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