Wall Street trading firm trueEx is set to launch a derivatives platform for cryptocurrency

Trading screens.

TrueEx is launching a derivatives platform for cryptocurrency, the company announced Monday.
It also entered into a partnership with ConsenSys to build a benchmark rate for ether, the second largest cryptocurrency by market capitalization.

TrueEx, the trading technology company, is preparing to dive into the world of cryptocurrency with a new derivatives marketplace.

The company said Monday it is preparing to launch trueDigital, which will list non-deliverable forward (NDF) contracts for cryptocurrency, the first of which will be for bitcoin. Already, trueEx faciliates trading for interest rate swaps.

TrueDigital, which will operate under a trueEx affiliate called trueDigital Holdings, is pending regulatory review by the Commodity Futures Commission, the company said.

TrueDigital would join two other bitcoin derivative marketplaces in the US. Cboe Global Markets and CME Group launched bitcoin futures in December.

“NDFs on digital assets are the logical next step for institutional investors who are seeking exposure to bitcoin and other digital currencies,” Brooks Dudley, a VP of risk at ED&F Capital Markets, said in a statement.

ED&F Capital Markets plans to offer prime brokerage services for cryptocurrency on the trueDigital platform.

TrueEx also announced a partnership with ConsenSys to build a benchmark rate from ether to make the second-largest crypto by market cap more attractive to traditional financial-services firms.

Up until last week, trueEx was seeking talent for a cryptocurrency derivatives exchange called Virtuoso, for which the company posted a job ad seeking a Sales Director. The ad was taken down from LinkedIn after Business Insider sent a company official an inquiry.

“Virtuoso is a new digital asset and digital derivative exchange, with a focus on bringing regulated and secure trading to institutional investors across the world,” the ad said.

The Sales Director would aim to build relationships with “top-tier” banks, asset managers, and hedge funds, the job ad said. A press representative for trueEx described trueDigital as the same project as Virtuoso, “just now a newly-formed affiliate of trueEx.”

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Source:: Business Insider – Tech

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