SFOX Working to Open Market by Facilitating Trading in Bitcoin Derivatives - BitcoinEthereumNews.com
SFOX co-founder George Melika said that the idea is to use NDFs – non-deliverable forward contracts typically used for currency markets – that will give banks a way to expose clients to the digital currency on a broader scale via contracts that settle in cash. “It‘s a product they’re familiar with, it‘s regulated, and they can trust they can get exposure to it without holding the underlying,” Melika told Bloomberg. He also added that banks do not have to buy Bitcoin for clients to be able to trade assets related to the token’s moves. SFOXs 120 institutional clients allow it to expand liquidity to a market for NDFs. SFOX has currently formed a group of engineers and traders to expand access to bitcoin for banks and big investors via a bespoke derivative. Banks worldwide have been cautious of getting involved with bitcoin due to compliance issues, “know your customer” (KYC) rules and market liquidity. However, Melika said it might help compliance departments get more comfortable with this newer product since banks already trade NDFs for other assets. SFOX is also among only a handful of firms dealing in digital assets that have joined the International Swaps and Derivatives Association, according to Bloomberg. Goldman Sachs Group Inc. has