Tag Archives: News

10 Firms Join to Create Code of Conduct for Digital Asset Markets

Ten financial services and technology firms leading developments in the digital asset and blockchain space have joined together to create the Association for Digital Asset Markets (ADAM) to establish a Code of Conduct for emerging digital asset markets.

US-based ADAM will proactively seek comprehensive standards for digital asset market participants. The group, which includes BitOoda, BTIG, Cumberland, Galaxy Digital, Genesis Global Trading, GSR, Hudson River Trading, Paxos, Symbiont and XBTO, says it will work with current and former regulators to provide rules for the efficient trading, custody, clearing and settlement of digital assets.

Future guidelines will encourage professionalism and ethical conduct by all market participants, increase transparency by providing information to regulators and the public, and deter market manipulation, the group stated.

Duncan Niederauer, former Chief Executive Officer of the New York Stock Exchange and ADAM Advisory Board Member, says, “Rules are fundamental to the development of any market. Over 200 years ago, market leaders came together to draft rules that led to the creation of the New York Stock Exchange. The advent of digital assets requires a similar effort; one that will clarify existing rules and give both investors and regulators the confidence necessary to sustain this market. I applaud the firms leading the ADAM initiative and look forward to advising them on standards that will enable this market to thrive.”

ADAM’s Code of Conduct will include guidelines for market integrity, risk management, KYC and AML, custody, record keeping, clearing and settlement, market manipulation, data protection, and research, among other topics.

ADAM plans to add new members and will announce its officers in the coming months. It will maintain offices in New York and Washington, DC. Participating organisations include trading venues, custodians, investors, asset managers, traders, liquidity providers and brokers.

Crypto and FX: More Alike than We Think?

FX industry veteran and Profit & Loss 2012 Hall of Fame inductee, David Ogg, reflected in a recent video interview on how the rapidly evolving crypto markets resemble the FX markets of the past.

“It’s like FX in the 1980s,” said Ogg, who is currently the head of FX and trading venues at OTCXN, before adding,“The front-end technology is pretty primitive.”

By contrast, he said that OTCXN has developed “cutting edge” technology in terms of how it displays liquidity, offering visual tickers that enable traders to get a visual representation of what is happening in the market with just a glance.

Ogg also noted that the speed of trading continues to be slow in the crypto space, while there are significant challenges regarding settlement that OTCXN has sought to address.

“A lot of technology has been retail focused, so some of it’s slow, the whole process needs to be ramped up. FX trading took off with prime broking, it allowed the buy side to come in and trade heavy amounts,” said Ogg.

He added that by offering instantaneous settlement, OTXCN will enable the crypto space to accelerate in much the same way that the FX space did after the introduction of PB.

“There’s a lot of similarities,” said Ogg.

The full video interview can be watched here: 

https://www.profit-loss.com/articles/news/videos/crypto-and-fx-more-alike-than-we-think

CLS Goes Live with DLT Netting Service

CLS’s new payment netting service based on distributed ledger technology, CLSNet, has gone live with Goldman Sachs and Morgan Stanley.
In a release issued today, CLS says that six additional participants from North America, Europe and Asia have committed to joining the service, although the only one it names is Bank of China (Hong Kong), and that the onboarding of several other market participants is planned in the next few months.

CLSNet has been designed to standardise and increase the levels of payment netting in the FX market for trades not settling in CLSSettlement. By standardising and automating the calculation of payment netting, CLSNet aims to reduce costs for market participants and increase liquidity in FX markets. The service was built in conjunction with IBM and runs on the Linux Foundation’s Hyperledger Fabric blockchain framework.

Commenting on the launch, Alan Marquard, chief strategy and development officer at CLS, says: “We are excited to be launching CLSNet, the first service of its kind to be operated on a DLT platform. Further, this offering demonstrates how we are using our unique, trusted position at the center of the FX market to solve industry challenges. A standardised and automated payment netting process will lead to improved intraday liquidity, reduced cost, improved operational efficiencies and ultimately support business growth.”

Adam Josephart, managing director, fixed income division, at Morgan Stanley, says: “CLSNet will deliver the standardisation and automation needed for non-CLS settled transactions. We are delighted that Morgan Stanley is one of the early adopters of the service.”

Barry Lo, general manager, bank-wide operation department of Bank of China (Hong Kong), comments: “We take great pleasure in participating in CLSNet, which will enhance operational efficiency in trade matching and payment netting for non-CLS settled currencies such as CNH, and strengthen our risk management. This underscores our strong commitment to driving Fintech innovation and represents a major step forward in the application of new technology in our businesses.”

Marie Wieck, general manager, IBM Blockchain, says: “Since we first pioneered the use of blockchain in the FX market nearly three years ago, IBM has been working hard with CLS on the development and deployment of CLSNet as the first post-trade production deployment of blockchain technology in a global market utility. With CLSNet now in production with two of the world’s largest banks, for a major market function, it is a testament to the ongoing maturity of blockchain technology and the value that it can deliver in practice.”

OTCXN Launches Crypto Block Trading Venue

OTCXN say has launched its OTC Block Trading venue for crypto trading – what it says will be the first of several trading venues that will be launched for institutional-only digital asset trading.

After a period of successful testing, the venue is now open to all clients with accounts at custodians on the OTCXN network, including Kingdom Trust and Prime Trust, both of whom are regulated US entities that offer custody services for fiat and cryptocurrencies. Trading on the venue includes fiat-for-crypto, crypto-for-crypto and fiat-for-fiat, the firm says.

“We are extremely pleased to announce that our institutional clients are now trading with each other on our OTC Block Trading venue,” says Rosario Ingargiola, CEO and founder of OTCXN. “Clients can now trade without risk to their counterparty and without waiting for settlement payments to hit their account or wallet. The immediate re-tradability of crypto assets with no public ledger transactions means more trading opportunities for our clients.”

In the OTCXN solution the cryptocurrency is always held in deep, cold storage, and neither side of the trade ever sends funds or crypto first. An immutable record of all transactions on a proprietary blockchain layer brings transparency and provability to facilitate the audit, fund administration and regulatory requirements of institutional clients.

Later this year, OTCXN says it will be launching its matching engine, LiquiMatch, as both a dark pool and lit central limit order book-style exchange for cryptocurrencies. It says clients will be able to access liquidity across all OTCXN trading venues via a single account at a custodian. It adds it also plans to launch a marketplace for coin lending and leverage financing in early 2019.

Blockchain Company Completes $80m Private Placement

Bitfury Group, a blockchain technology company, has closed an $80 million private placement with global institutional and corporate investors.

The private placement was led by Korelya Capital, the European growth capital firm backed by Korean firm, NaverGroup. The placement was joined by investors such as Macquarie Capital, Asian financial institution Dentsu Inc, European investment company Armat Group, European fund managers Jabre, Lian Group, special situations investment firm Argenthal Capital Partners, insurance group MACSF and Galaxy Digital, a specialised digital asset merchant bank led by Mike Novogratz. iTech Capital, an Eastern European tech specific private equity firm and historical investor in Bitfury, also took part in the placement.

European technology investment bank Bryan, Garnier & Co advised the company on the private placement.

“2018 has been a year of incredible expansion for Bitfury. This private placement reflects our achievements, and it recognises our ability to address adjacent market segments in high-performance computing, including in emerging technologies like artificial intelligence (AI),” says Valery Vavilov, CEO and co-founder of Bitfury. “The institutionalisation of blockchain and cryptocurrencies, partnered with the opportunity of these emerging technologies, is a natural expansion opportunity that Bitfury will build on  in 2019 and beyond.”

George Kikvadze, executive vice chairman of Bitfury, says the company’s successful private placement was a result of investors’ belief that the company is well positioned to lead the industry into another period of strong growth.

“With a halfbillion dollars in revenues, Bitfury is the leading blockchain B2B global technology infrastructure provider at the corporate and government level. This private placement will take our corporate governance to the next level, broaden our financial strategic options, and ideally position us for our next phase of growth as the market matures,” he says.

“We are joining Bitfury as a lead investor at an incredibly exciting time for both the company and the blockchain ecosystem,” comments Antoine Dresch, co-founder and managing partner of Korelya Capital. “Bitfury has grown from a small startup to the largest western blockchain unicorn, equipped with world-class leadership and expertise, consistently delivering innovative solutions across the entire blockchain ecosystem.”

Novogratz, CEO and founder of Galaxy Digital, says: “We are excited to partner with Bitfury, a leading solutions provider in blockchain and Bitcoin. We are impressed with Bitfury’s unparalleled team, as well as the company’s vision, technical expertise and global reach, all of which are essential to advancing the underlying bitcoin ecosystem.”

Bitfury provides computing technologies and processing capabilities, and designs software solutions for governments and corporations to deploy real-life blockchain solutions. In 2018, the company launched its sixth generation of chip design, the Bitfury Clarke ASIC, as well as a new series of computing servers, the Bitfury Tardis.

« Older Entries Recent Entries »