Regulation
One Trading gets landmark regulatory approval for European crypto derivatives trading
AMSTERDAM
One Trading, a leading European cryptocurrency exchange, has been granted an Organised Trading Facility (OTF) licence by the Dutch financial market regulator. This licence establishes One Trading as a MiFID II trading venue and marks a significant milestone in the company’s multi-year journey with the Dutch Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB) to revolutionise derivatives trading and bring cryptocurrency futures onshore to the EU.
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Joshua Barraclough – Founder and CEO of One Trading (Photo: Business Wire)
Transforming Derivatives Trading in Europe
With the new license, One Trading becomes the only perpetual futures trading venue in the EU and the first cash-settled perpetual futures platform in Europe, including the UK. This approval establishes One Trading as the first regulated derivatives exchange in Europe accessible to retail clients.
Additionally, One Trading is transitioning crypto derivatives to “venue-traded” instruments, further improving the regulatory framework and security for European clients. The products One Trading is launching are the modern alternative to products provided by traditional futures venues such as CME or Eurex, but are simpler, more accurate and much more capital efficient than traditionally cleared derivatives such as dated futures.
Innovative and proprietary technology
One Trading’s technical implementation of perpetual futures distinguishes it as the first trading venue in the world to offer real-time settlement (tick level < 1 minute) of all derivative positions, 24/7 across all markets. This ground-breaking capability complements the proprietary technology already developed to provide the fastest and most scalable spot trading venue globally. One Trading’s technology seamlessly integrates DLT custody and settlement, making it the first EU venue to allow the use of crypto-assets as collateral for trading in regulated financial instruments.
Complete and integrated clearing and settlement
As the only regulated exchange that integrates the creation and trading of derivatives products without the need for external clearing, One Trading offers an unparalleled suite of services, all directly available to professional and retail clients. With DLT infrastructure mobilizing collateral t+0 and 24/7, One Trading challenges the existing financial market infrastructure as the first to eliminate costly post-trade processes in favor of a clear, secure and robust structure focused on helping all clients obtain the exposures they want, and nothing more. This integrated approach comes to life in a highly regulated environment through the use of cutting-edge technology, making it a unique model and difficult to replicate within MiFID II.
Joshua Barraclough, Founder and CEO of One Trading commented: “We are thrilled to have reached this milestone, which represents the culmination of years of hard work and innovation. The company’s long-term vision is to enable all types of clients to go long or short any asset, use any asset as collateral, settle everything instantly, and roll over contracts perpetually. 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 types of clients starting with BTC and ETH products, where there is currently no onshore EU regulated venue. This is just the beginning of our journey to redefine the landscape of digital asset and traditional securities trading.”
A significant achievement in regulatory approvals
Obtaining the first new Organised Trading Facility licence granted in the EU in the last three years underlines the rigorous standards achieved by One Trading. This reflects the company’s innovative approach and trusted leadership, as well as its dedication to reshaping the way regulated financial instruments are traded in the digital age.
General Counsel Mario Hoessl-Neumann added: “It has been a great experience working closely with the Dutch regulators for much of this process and we appreciate their vision and foresight in bringing a new market structure for regulated derivatives trading to the EU. By launching a new form of financial instruments with purpose-built technology and seamlessly integrating DLT-based assets on the One Trading platform, we are not only providing European clients with the first onshore alternative to unregulated exchanges. More fundamentally, we are complementing and, in some important ways, replacing traditional structures for how regulated derivatives such as futures are traded. It has always been a core value for us to maintain equal capabilities for professional and retail clients and it is fantastic to see that we are now the first in Europe to bring to life a trading venue that truly works for everyone.”
One Trading was advised on its licence application by A&O Shearman (Alexander Behrens) and Freshfields Bruckhaus Deringer (Daphne van der Houwen and Stephan Pachinger).
About One Trading
One Trading is a European digital asset exchange headquartered in the Netherlands. The company is committed to providing a secure, fast and scalable platform for trading crypto-assets and derivatives. With a focus on innovation and regulatory compliance, One Trading aims to set new standards in the industry and offer unparalleled services to its clients. For more information, visit our website, XOR LinkedIn.
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