Proprietary new Options Chain also brings enhanced data and price visualisation to OTC crypto derivatives
[31 October 2022] London, Tokyo, and Jersey City, New Jersey: B2C2, the world’s largest crypto liquidity provider and institutional digital asset pioneer, announces that it is now live with electronic options trading for the over-the-counter (OTC) crypto market. B2C2 has offered ‘voice via chat’ OTC options trading since October 2021.
B2C2 is now offering electronic OTC options via its Single Dealer Platform. Options Chain provides a powerful visual interface enabling 'point & click' electronic trading in OTC crypto options for the first time. This functionality transforms OTC options trading by giving traders a choice of how to execute off-exchange trades.
Additionally, B2C2’s Options Chain brings streaming prices to options traders, providing them with a comprehensive view of live OTC prices for all strikes in one place for the first time. Traders will no longer need to request prices individually - they can now see the whole surface at a glance - transforming execution.
The new options OTC functionality is fully integrated into B2C2’s crypto-native spot, CFD and loans trading platform. Options post-trade reporting is already live with a trade blotter and aggregated positions, along with automation around B2C2’s institutional-grade ISDA margin functionality. New features will be added incrementally over the next few months, including an options calculator with Request for Quotes (RFQ) functionality on complex derivatives structures. As with B2C2’s other OTC products, all functionalities will be available on the B2C2 portal as well as via API.
Following the market downturn, the crypto derivatives market has grown on-exchange to $3.12 trillion in July 2022, a 13% monthly increase, according to CryptoCompare, and makes up more than 60% of total crypto volumes. As in other asset classes, like FX, it’s expected that OTC trading volumes will grow to a multiple of ‘on-exchange’ trading.
The OTC market has a number of features, however, not available on-exchange. These include:
• Flexible contracts tailorable to a client’s specific needs and strategy;
• A bilateral counterparty relationship built on trust and with the ability to extend credit;
• Technology, operations and risk management best practices designed for institutional needs and standards.
“Providing our clients with the ability to trade OTC options electronically reflects significant growth in institutional demand for derivatives over the past 12 months,” said Johannes Woolard, Head of Options, B2C2. “Clients are looking for a more comprehensive set of tools to access, hedge and trade crypto simply and easily. Institutions turn to us as a well-established and innovative crypto-native liquidity provider with the reliable and resilient trading infrastructure they require.”
Dominic Lohberger, Head of Trading, Sygnum Bank, said, “B2C2 is taking institutional crypto derivatives trading to the next level. As a regulated digital asset bank with institutional clients, Sygnum is proud to be executing the first OTC trade with the B2C2 Options Chain. Together we are setting the path for the future of electronic crypto trading.”
B2C2 is a leading institutional crypto liquidity provider and has been at the forefront of global market developments since it was founded in 2015. The firm executed a pioneering bilateral crypto non-deliverable forward (NDF), opening up access for banks last year. In 2022 it joined ISDA and was the first crypto trading firm to join FIA.
Serra Balls and Jenny Berlin
+ 44 (0)7375 288 641
More than just a liquidity provider, B2C2 is a digital asset pioneer building the ecosystem of the future.
The firm has unlocked institutional access to crypto by providing reliable liquidity across market conditions. B2C2’s success is built on crypto native technology and continuous product innovation, making it the partner of choice for diverse institutions globally.
Founded in 2015 and majority owned by Japanese financial group, SBI, B2C2 Ltd is headquartered in the UK, with offices in the US and Japan.
B2C2 Ltd is registered in England and Wales under company number 07995888 with its registered office at 86-90 Paul Street, London, EC2A 4NE. B2C2 Ltd is the parent company of the B2C2 group of companies. Products may be provided by different members of the B2C2 group of companies, depending on the jurisdiction of the client and the regulatory status of the product and/or B2C2 group member. B2C2 is a registered trademark.
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