Trading Firm DRW will launch bilateral cryptocurrency options contracts
Chicago-based high-speed trading firm DRW Holdings is expected to offer bilateral over-the-counter (OTC) derivatives in options, Bloomberg reports.
Such an investment product, which makes it possible for traders and investors to improve their hedging strategy, remains relatively exotic. Only a few cryptocurrency firms, such as Galaxy Digital Holdings, offer it as of now.
Rob Strebel, Head of Relationship Management at DRW, emphasized that they want to give their customers the best deal of its kind:
We feel like that’s where the market is heading. We’re seeing the development and the interest building, so we are putting a ton of resources into making sure that we’re going to be the best provider of that product.
DRW, which was founded in 1992 by legendary trader Donald Wilson, specializes in algorithmic financial trading that relies on a set of technological tools. He has been a major player in the Bitcoin market for years.
All the way back in 2014, DRW launched Cumberland, its own cryptocurrency OTC trading desk, which remains one of the top market makers within the industry.
Other trading giants have also started monitoring the cryptocurrency market after its huge growth in 2021, like rivals such as Susquehanna and DRW. As reported by U.Today, Ken Griffin, the billionaire who heads investment firm Citadel, recently signaled that his Wall Street empire is ready to dip its toes into crypto despite the fact that the investor was previously critical of the new asset class. .
Cboe enters the spot and derivatives crypto markets
Cboe Global Markets Inc. (Cboe: CBOE) announced Wednesday that it has agreed to acquire Eris Digital Holdings LLC (Erisx).
Erisx’s futures exchange and clearinghouse are regulated by the Commodity Futures Trading Commission (CFTC). In addition, its clearinghouse is registered with the Financial Crimes Enforcement Network (FinCEN) and licensed in many US states and territories.
Noting that “Erisx operates a US-based digital asset spot market, regulated futures exchange and regulated clearinghouse,” the announcement details:
Ownership of Erisx enables Cboe to access the spot and derivative markets for digital assets, including clearing and settlement.
