SFOX, a digital asset prime dealer, announced that it has now matched, executed, and cleared the first-ever crypto NDF contract between B2C2 and an undisclosed financial institution over its multi-dealer network in early February. It establishes SFOX as the first platform to intermediate between a buyer and a seller in the crypto NDF market as well as the first multi-dealer platform to execute an NDF trade.
A non-deliverable forward (NDF) is a cash-settled, and usually short-term, forward contract. Crypto NDFs permit banks and other highly regulated financial institutions to gain exposure to the $3 trillion crypto markets until greater regulatory clarity is provided for such institutions to trade in the underlying crypto instruments. SFOX, a native crypto spot participant and prime dealer, is establishing an ecosystem where buyers and sellers can match their interests either on a fully disclosed basis or anonymously both in spot and derivatives.
In January, SFOX joined ISDA, the International Swaps and Derivatives Association, as the third native cryptocurrency company. SFOX is one of the largest independent prime crypto dealers and provides best price execution for all financial institutions, hedge funds, and institutional investors. This clearing of the first-ever crypto NDF contract paves the way for SFOX’s non-retail clientele seeking crypto exposure on a cash settled basis.
“SFOX has created a digital nexus for financial institutions to access connectivity to the deepest pools of crypto liquidity including our newly launched crypto NDF orderbook,” said Shawn Egger, global head of execution at SFOX, in a statement.
“NDFs are the first derivatives instrument for SFOX, and we have a robust plan to launch a full suite of derivatives and DeFi products in 2022” said George Melika, SFOX CEO and co-founder, in a statement.
Chris Dick, senior quantitative trader for B2C2, said in a statement: “As the leader in true principal at risk liquidity provision in the crypto market we look forward to working with SFOX to help institutional investors access our global liquidity and grow the asset class.”
SFOX’s customers include a range of institutional investors including hedge funds, traders, financial advisors and other financial institutions. SFOX’s developers and executives come from companies such as Airbnb, Apple, Goldman Sachs, Citadel, Google, NASA, Gemini, Capital Group, ITG, and State Street.