SFOX, a California-based crypto prime dealer, announced today that it has executed a crypto non-deliverable forward (NDF) as a bilateral transaction. The firm disclosed about this achievement after it matched, executed and cleared the first-ever crypto NDF contract between London-based crypto Liquidity provider B2C2 and an undisclosed financial institution over its multi-dealer network.
The execution establishes SFOX as the first platform to intermediate between a buyer and a seller in the crypto NDF market and also as the first multi-dealer platform to execute an NDF trade.
Therefore, SFOX is establishing an ecosystem where sellers and buyers can match their interests either on a fully disclosed basis or anonymously both in derivatives and spot.
Crypto NDFs provide synthetic exposure to crypto assets through a standardized instrument. The execution
Execution
Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018.
Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018.
Read this Term of crypto NDFs is creating a gateway to crypto markets for traditional financial institutions, such as investment banks, that are currently unable to handle the underlying assets.
Traditional banks do not use spot crypto because of challenges such as risk and compliance. So, NDFs give them exposure to the spot market without having to take physical custody of cryptocurrencies.
Robert Catalanello, the Co-CEO of B2C2, stated: “We are thrilled that SFOX is the first central intermediary to an NDF crypto contract transaction. SFOX is unique in its ability to match, execute and clear the new crypto derivative contract over its multi-dealer network. This marks a milestone in crypto’s acceptance by mainstream financial institutions.”
Meanwhile, Shawn Egger, the Global Head of Execution at SFOX, added: “SFOX has created a digital nexus for financial institutions to access connectivity to the deepest pools of crypto liquidity
Liquidity
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Read this Term including our newly launched crypto NDF orderbook.”
Providing Access to Capital and Market Liquidity
Founded in 2014, SFOX continues to strengthen institutional crypto-asset trading. It is known for offering deep liquidity, with low slippage, solid technology and has been in the cryptocurrency ecosystem since the early days.
In February 2020, SFOX partnered with B2C2 to provide its high-volume investors, including high-net-worth individuals, asset managers, hedge funds, and family offices, with a new source of liquidity. The partnership marked the first time an over-the-counter (OTC) trading venue was added to the SFOX platform. The addition enabled SFOX clients to benefit from a new source of OTC liquidity together with greater price discovery.
In March 2020, Cooper.co, a crypto custodian and prime brokerage platform, partnered with SFOX to enhance its over-the-counter (OTC) settlement process and expand its liquidity. The collaboration enabled Copper’s institutional clients to access SFOX’s global liquidity pool and price execution platform.
SFOX, a California-based crypto prime dealer, announced today that it has executed a crypto non-deliverable forward (NDF) as a bilateral transaction. The firm disclosed about this achievement after it matched, executed and cleared the first-ever crypto NDF contract between London-based crypto Liquidity provider B2C2 and an undisclosed financial institution over its multi-dealer network.
The execution establishes SFOX as the first platform to intermediate between a buyer and a seller in the crypto NDF market and also as the first multi-dealer platform to execute an NDF trade.
Therefore, SFOX is establishing an ecosystem where sellers and buyers can match their interests either on a fully disclosed basis or anonymously both in derivatives and spot.
Crypto NDFs provide synthetic exposure to crypto assets through a standardized instrument. The execution
Execution
Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018.
Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018.
Read this Term of crypto NDFs is creating a gateway to crypto markets for traditional financial institutions, such as investment banks, that are currently unable to handle the underlying assets.
Traditional banks do not use spot crypto because of challenges such as risk and compliance. So, NDFs give them exposure to the spot market without having to take physical custody of cryptocurrencies.
Robert Catalanello, the Co-CEO of B2C2, stated: “We are thrilled that SFOX is the first central intermediary to an NDF crypto contract transaction. SFOX is unique in its ability to match, execute and clear the new crypto derivative contract over its multi-dealer network. This marks a milestone in crypto’s acceptance by mainstream financial institutions.”
Meanwhile, Shawn Egger, the Global Head of Execution at SFOX, added: “SFOX has created a digital nexus for financial institutions to access connectivity to the deepest pools of crypto liquidity
Liquidity
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Read this Term including our newly launched crypto NDF orderbook.”
Providing Access to Capital and Market Liquidity
Founded in 2014, SFOX continues to strengthen institutional crypto-asset trading. It is known for offering deep liquidity, with low slippage, solid technology and has been in the cryptocurrency ecosystem since the early days.
In February 2020, SFOX partnered with B2C2 to provide its high-volume investors, including high-net-worth individuals, asset managers, hedge funds, and family offices, with a new source of liquidity. The partnership marked the first time an over-the-counter (OTC) trading venue was added to the SFOX platform. The addition enabled SFOX clients to benefit from a new source of OTC liquidity together with greater price discovery.
In March 2020, Cooper.co, a crypto custodian and prime brokerage platform, partnered with SFOX to enhance its over-the-counter (OTC) settlement process and expand its liquidity. The collaboration enabled Copper’s institutional clients to access SFOX’s global liquidity pool and price execution platform.
