One Trading Wins Approval to Offer Crypto Derivatives Services in Europe

Coinspeaker
One Trading Wins Approval to Offer Crypto Derivatives Services in Europe

One Trading, a leading crypto exchange based in Europe, has received regulatory approval from financial regulators in the Netherlands to offer its derivatives products to customers in the region.

In an announcement on Monday, the firm said it has been granted an Organised Trading Facility (OTF) License by the Dutch Financial Markets Authority (AFM) and the Dutch Central Bank (DNB) to introduce perpetual futures contracts to its European customers. This development marks the first OTF license approved by the financial watchdog in three years.

With this license, One Trading will be able to establish itself as the only exchange regulated to offer MiFID II trading venues for perpetual futures within the European Union. Additionally, the company has become the first cash-settled perpetuals platform in both Europe and the United Kingdom.

Users across the region will be able to trade on the price performance of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) under protected EU laws. This opportunity will cater to both seasoned and retail traders, offering them a valuable avenue for pursuing financial growth and independence.

Traders will also benefit from a range of services offered by One Trading. The company plans to introduce product creation, trading, custody, and real-time settlement for crypto derivatives within a single regulated venue, eliminating the need for external clearing.

The European-based exchange will be onshoring crypto derivatives as ‘traded on a trading venue’ instruments to further enhance the regulatory framework in Europe. The new products are designed to provide a modern alternative to traditional futures contracts offered by exchanges such as CME or Eurex.

One Trading’s offerings are developed to be easier to understand, more accurate, and more cost-effective than traditional futures, making them a more user-friendly option for traders seeking advanced financial instruments.

The company’s CEO Joshua Barraclough stated that the firm aims to become the go-to platform for futures trading in the long term.

“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,” said Barraclough.

Barraclough also praised the company’s team for their dedication and hard work in helping the firm achieve regulatory approval, which will enable it to establish a platform that “exceeds the highest regulatory standards”.

This new milestone will support the company’s goal of offering 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,” Barraclough added.

The company plans to implement real-time settlement for all derivatives positions, with updates occurring at intervals of less than one minute across all markets. This advanced feature complements the company’s existing technology, which supports its successful and growing spot market.

The technology integrates custody and settlement services through Distributed Ledger Technology (DLT), making One Trading the first EU trading venue to allow crypto-assets to be used as collateral for trading regulated financial instruments.next

One Trading Wins Approval to Offer Crypto Derivatives Services in Europe