TP ICAP, the world's largest broker, announces the launch of Bitcoin derivatives trading

According to Bloomberg News reported on June 17, in the face of the slowdown in core brokerage business, TP ICAP Plc, the world's largest broker, followed a few traditional financial companies and planned to trade Bitcoin derivatives.


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Currently, its ICAP business unit acts as an intermediary between Bitcoin futures customers. The newly formed company will be operated by Simon Forster and Duncan Trenholme from London and is expected to increase bitcoin non-deliverable forward foreign exchange trading business and plans to open trading desks in Asia and the United States.

Unlike most of its clients, TP ICAP is willing to embrace financial institutions such as Fidelity and the Intercontinental Exchange Group to embrace the emerging field of cryptographic assets. Even though cryptocurrencies have gradually come out of a year-long downturn, so far, big money managers and investment banks are still avoiding crypto assets.

Trenholme, co-director of the company's digital asset market, said in an interview:

Every institution is growing in continuous learning. Many organizations are now exploring how to legally trade or store cryptocurrencies. I expect that there will be more projects in the market in the next year or two.

Traditionally, brokers such as TP ICAP have relied on dealing with banking transactions, but their trading volume has decreased after the financial crisis. Last year, the TP ICAP profit warning caused the market value to plummet 36% in one day. After that, it rose again by about 10% to 1.6 billion pounds ($2 billion).

TP ICAP Europe, Middle East and Africa CEO Frits VCMEogels said that customers who want to access digital assets through the company must first pass identity checks and anti-money laundering checks. This is why TP ICAP chose to start with cash-settled futures contracts, which trade on markets regulated by the Chicago Mercantile Exchange (CME) rather than directly into the prima cryptocurrency market.

The Chicago Board Options Exchange (Cboe) ended its 18-month bitcoin futures contract this week, making the Chicago Mercantile Exchange the only available regulated platform.

In addition, TP ICAP is exploring various digital assets, including cryptocurrency and certifying assets. In the future, the company may conduct cryptocurrency transactions on the stock market.

Forster said:

We want to be in touch with the cryptocurrency industry, as early investment is especially important for a growing market. TP ICAP also understands that this technology may damage or affect other assets we have, so timely information is necessary for us.