Coinfloor, a group of cryptocurrency exchanges targeting institutional and sophisticated retail traders, has launched CoinfloorEX – a cryptocurrency futures exchange.
CoinfloorEX will offer for the first time ever physically delivered cryptocurrency futures contracts, which the firm says will protect investors and traders against price slippage on positions at time of settlement, as well as allay concerns of market manipulation.
“The cash settled futures have been around since 2011 and so far they haven’t succeeded very much. When you talk to the institutional players they all want physically delivered futures,” says Mark Lamb, co-founder of Coinfloor.
The aggregate volume for SGX FX futures stayed above 1 million contracts, or approximately US$ 53 billion, for the full month, representing year-on-year (y-o-y) growth of 99.3%.
The average daily volume (ADV) of FX contracts traded on the exchange in February was 1.17 million. On a Year-to-Date (YTD) basis, this represents an increase of 123% over the corresponding period in 2017.
SGX’s USD/CNH futures saw a pick-up in activity last month, with 10 successive days of trading in excess of $1 billion, including two consecutive days of trading above $2 billion.
CME Group has announced it will launch monthly and quarterly Secured Overnight Financing Rate (SOFR) futures on May 7, pending regulatory review.
The announcement comes one day after the Federal Reserve Bank of New York said it would start publishing Treasury repo reference rates from April 3. The futures will be based on the Alternative Reference Rates Committee-endorsed SOFR index, and although correlated with Libor and effective federal funds rates, SOFR, a broad Treasury repo index, is distinct from these rates, CME says.
Mobile payments and cryptocurrency startup, Circle, has acquired the crypto-asset exchange Poloniex.
Circle is backed by $140 million in venture capital from investors including Goldman Sachs, IDG Capital Partners, Breyer Capital, Accel Partners, General Catalyst Partners, Baidu, CICC Alpha, EverBright, WangXiang and CreditEase.
Circle has two main business lines. According to the company, “Circle Pay helps people around the globe connect to one another and share value just as they would share any other kind of content on the open borderless Internet; Circle Trade serves institutions and investors as one of the world’s largest providers of crypto asset liquidity.”
Circle says that it is also planning to launch an app that will enable individuals to tap into crypto-asset investment “through a simple, seamless, mobile experience”.
FastMatch has generated €7.2 million in revenues for Euronext since the exchange operator acquired 90% of the OTC FX platform in August 2017, according to its full-year 2017 results.
As part of that deal, $46.7 million was paid to FXCM on closing for its stake in FastMatch, with $8.7 million held in escrow subject to certain potential future adjustments.
In addition, it was agreed that FXCM would receive share of a $10 million earnout if certain performance targets of FastMatch are met, although these targets have not been disclosed.
Average daily volumes (ADV) across TR’s FX platforms totaled $432.1 billion in January 2018, with ADV for spot trading at $107.9 billion. This total reflects trading volumes on Thomson Reuters Matching and FXall in all transaction types, including spot, forwards, swaps, options and non-deliverable forwards (NDFs). “Following preparation for and then implementation of one of the most complex regulatory initiatives in a generation, our success over the last month reflects the value we place in listening to our clients and ensuring our solutions meet their MiFID II needs,” says Neill Penney, co-head of trading. “As the market evolves, we are committed to making additional enhancements across our trading businesses, including enriched analytics and algo trading capabilities.”
Singapore Exchange (SGX) set a new volume and open interest records for its USD/CNH futures contract in January.
A total of 297,011 USD/CNH futures contracts with a notional value of $29 billion traded on SGX’s platform last month. This represents an increase of 175% y-o-y and comes after the exchange reported full-year growth in trading on the contract of 270% in 2017 compared to the previous year.
Meanwhile, the daily open interest for this product reached a new high of 31,278 contracts, with a notional value of $ 3.21 billion, on 26 January.
LMAX Exchange has completed an equity purchase of Paddy Power Betfair’s remaining stake in the business.
The 31.35% stake (or 187,811 shares), bought for £21,945,000, brings 95% of the company under the control of the group’s management.
The equity purchase is financed by a senior debt facility provided by Silicon Valley Bank (SVB), a bank focused solely on the innovation economy. The terms of the loan are not disclosed.
David Mercer, CEO of Lmax. comments: “I am very pleased to be working with Silicon Valley Bank. SVB’s focus on the innovation economy resonates perfectly with Lmax Exchange growth story and future ambition – this creates a solid foundation for our partnership going forward. Having successfully built a global exchange marketplace for FX, our ambition is to continue growing our distribution and propagate the exchange execution model across capital markets.”
New data from the Futures Industry Association (FIA) highlights the lack of significant growth in the volume of FX futures trading over the past several years.
According to the FIA data, 2.1 billion currency futures contracts were traded in 2017, and while this represents a 302% increase from the 2008 volumes – which is as far back as the FIA data provided goes – this hardly tells the whole story.
The data shows that between 2009 and 2010 the volume of FX futures traded jumped 160%, from 950 million contracts to almost 2.5 billion. What drove this sudden spike in trading volumes?
CME Group announces that three of the larger FCMs in the market – Citi, Credit Suisse and Morgan Stanley – have started to clear NDFs for their clients at CME.
This follows on from the announcement from the exchange in late 2017, that seven market participants had agreed to clear NDFs, including three of the top four emerging markets FX liquidity providers, according to the Euromoney survey.
CME claims in a release issued today that its strength in the interest rate swaps (IRS) markets in LatAm and APAC make it “the natural home for participants to clear FX NDFs”.