One Trading has introduced the European Union's first MiFID II-regulated trading venue for crypto perpetual futures, initially for institutional investors with plans to extend access to eligible retail clients in the coming weeks.

One Trading Launches First EU-Regulated Crypto Perpetual Futures Platform

The Amsterdam-based firm's platform, operating under an Organized Trading Facility (OTF) license from the Dutch Authority for Financial Markets (AFM), offers BTC/EUR and ETH/EUR perpetual futures trading pairs, marking the first regulated cash-settled perpetual futures platform in Europe.

Joshua Barraclough

"The launch of our perpetual futures platform is a major milestone in our three-year journey," said One Trading CEO Joshua Barraclough. "From the start, our goal has been to simplify trading by making markets more accessible, transparent, and cost-effective."

According to the company, the platform achieves real-time settlement of derivative positions 24/7 with sub-1-minute settlement times. The system reportedly processes over 1 million orders per second with execution latencies under 70 microseconds.

Last year, One Trading secured funding to expand its offering from SC Ventures, the investment arm of Standard Chartered. At the same time, it also obtained regulatory approvals to operate as a cryptocurrency business.

Until June 2023, One Trading operated as Bitpanda Pro, an independent division of the popular trading platform Bitpanda, tailored to more experienced users. However, the exchange announced a rebranding following the successful completion of a €30 million funding round.

Dutch Exchange Debuts Institutional Trading

One Trading claims to be the only regulated exchange that integrates derivatives product creation and trading without external clearing requirements, potentially reducing costs by eliminating traditional post-trade processes.

Following an extensive testing phase, several market participants are now active on the platform providing liquidity. The company plans to announce the expansion to eligible retail clients in the coming weeks.

Barraclough added, "Today, we are delivering on that vision with the launch of a fully regulated, vertically integrated onshore exchange for perpetual futures. Customers will no longer need to pay vast fees in margin to get access to leverage, trade CFDs or need to trade on unregulated offshore venues."

What Are Crypto Perpetual Futures?

Crypto perpetual futures combines elements of traditional futures contracts with unique features tailored for 24/7 cryptocurrency markets.

Unlike standard futures that expire on a set date, perpetual futures have no expiration date, allowing traders to hold positions indefinitely. This distinct characteristic has made them the dominant derivative instrument in cryptocurrency markets, accounting for billions in daily trading volume.

At their core, perpetual futures are agreements to buy or sell an asset at a future date, but with a crucial twist. Since they don't expire, these contracts use a funding rate mechanism to ensure the perpetual future price stays closely aligned with the spot market price.

Two months ago, cryptocurrency exchange Gemini received in-principle approval for an Investment Firm licence from the Malta Financial Services Authority (MFSA). Under this licence, the company also plans to soon begin offering crypto perpetual contracts in compliance with MiFID II regulations.

Source: Finance Magnates