TrueEX: CFTC-Regulated Interest Rate Swaps Exchange Platform?
TrueEX is a global CFTC-regulated exchange for interest rate swaps. Find out how it works today in our review.
What is TrueEX?
TrueEX, found online at trueEX.com, aims to provide connections to multiple clearing houses, allowing traders to engage in interest rate swaps across a CFTC-regulated, global exchange.
trueEX is a Wall Street trading firm. So why are we talking about it on our bitcoin news blog? Well, in March 2018, TrueEX announced that it was diving into the world of cryptocurrency trading by launching a new derivatives marketplace.
Specifically, trueEX will launch a platform called trueDigital. That platform will list non-deliverable forward (NDF) contracts for cryptocurrencies. The first contract will be for bitcoin.
trueDigital will operate under a trueEX affiliate called trueDigital Holdings. The platform is pending regulatory review by the Commodity Futures Trading Commission (CFTC).
If approved, trueDigital would join a number of other bitcoin derivative and futures markets in the United States. Cboe Global Markets and CME Group made headlines worldwide for launching bitcoin futures in December 2017, for example, and Nasdaq is preparing to launch a similar market sometime in 2018.
trueEX partnered with blockchain technology company ConsenSys to bring their trueDigital platform to life.
What Does TrueEX Offer to Investors?
trueEX sees non-deliverable forward (NDF) contracts as the logical next step for institutional investors who are seeking exposure to bitcoin and other digital currencies.
Thus far, the crypto marketplace has been lacking the kind of institutional involvement that trueEX seeks to offer. Here’s how Sunil Hirani, the founder of trueDigital Holdings, explained it in a press release announcing the project:
“Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities, but the marketplace is sorely lacking the necessary foundation, infrastructure and other platforms that institutional investors have come to expert in other important markets.”
Typically, trueEX operates an electronic exchange for interest rate swaps. The company allows users to trade multiple currencies across diverse order types. Users can connect with trueEX through the main user interface or through an API connection. Customers can choose from different clearing firms and clearing houses.
Now, with their new regulated derivatives marketplace for digital assets, trueEX will allow users – particularly institutional investors – to trade cryptocurrency derivatives with a high level of transparency and confidence.
The initial product offered by trueEX will be for Bitcoin non-deliverable forwards (NDFs) settled in USD.
trueEx will also partner with ConsensSys to create a benchmark rate from Ether. This benchmark rate is designed to make Ethereum – the world’s second largest cryptocurrency – more attractive to institutional investors. Obviously, there’s been a lot of focus on encouraging institutional investors to participate in the bitcoin market. Now, a growing number are turning their attention toward Ethereum and other major cryptocurrencies.
trueEX is a New York City-based fintech company. In March 2018, the company announced the release of an upcoming regulated derivatives marketplace for digital assets. trueEX was incorporated in 2010. The company was originally named SwapCo Holdings LLC, but changed its name to trueEX in 2011.
trueEx LLC is known for operating the first exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM) for swaps. It’s an exchange and registered swap execution facility, or SEF, that has executed over $9.7 trillion in trading volume and $20.7 trillion in post-trade processing services since its launch.
CME Group, Nasdaq, and others have begun offering Bitcoin futures. Now, New York’s trueEx aims to offer digital asset derivatives on a regulated exchange. This should increase the appeal of cryptocurrency derivatives for institutional investors by offering increased security and confidence.
To learn more about trueEx’s new digital asset derivatives exchange, visit online today at trueEx.com.