One Trading, a European crypto-asset exchange, has reportedly been granted an Organized Trading Facility (OTF) License by the Dutch financial market regulator.
This license establishes One Trading as “a MiFID II trading venue and marks a significant milestone in the company’s multi-year journey with the Dutch Financial Markets Authority (AFM) and the Dutch Central Bank (DNB) to revolutionize the trading of derivatives and bring crypto futures onshore in the EU.”
With the new license, One Trading becomes the “only perpetual futures trading venue in the EU and the first cash-settled perpetuals platform in Europe, including the UK.”
This approval reportedly establishes One Trading as “the first regulated derivatives exchange in Europe accessible to retail clients.”
In addition, One Trading is onshoring crypto derivatives as “traded on a trading venue” instruments, further “enhancing the regulatory framework and security for European customers.”
The products that One Trading is rolling out “are the modern alternative to products
provided by traditional futures venues such as the CME or Eurex, but are simpler, more precise, and far more capital efficient than traditionally cleared derivatives such as dated futures.”
One Trading’s technical implementation “of perpetual futures sets it apart as the first trading venue in the world to offer real-time (<1-minute tick level) settlement of all derivatives positions, 24/7 on all markets.”
This capability complements the proprietary technology already “developed to provide the fastest and most scalable spot trading venue globally.”
One Trading’s technology “integrates custody and settlement on DLT, making it the first EU venue to allow the use of crypto-assets as collateral for trading regulated financial instruments.”
As the regulated exchange that integrates derivatives product creation and trading without the need for external clearing, One Trading offers a suite of services “which are all directly available to professional and retail clients.”
With DLT infrastructure mobilising collateral t+0 and 24/7, One Trading challenges existing financial market infrastructure “as the first to eliminate costly post-trade processes in favour of a clear, safe, and robust structure focused on helping all clients get the exposures they
want – and nothing more.”
This integrated approach is brought to life “in a highly regulated environment by use of leading technology, making it a unique and hard-to-replicate model within MiFID II.”
Joshua Barraclough, Founder and CEO of One Trading commented:
“We are thrilled to have achieved this milestone, which represents the culmination of years of hard work and innovation. The long-term vision of the company is to enable all customer types to go long or short on any asset, use any asset as collateral, settle everything instantly, and perpetually roll contracts. Our team has been dedicated to developing a platform that not only meets but exceeds the highest regulatory standards. With this license, we are well positioned to introduce new regulated products and offer institutional-grade solutions to all customer types starting with BTC and ETH products where no onshore EU regulated venue currently exists. This is just the beginning of our journey to redefine the landscape of digital asset and traditional security trading.”