Seed SEF Launches Physically-Settled BTC Derivatives Testing

The user accepted testing environment will carry on through early August.

This Tuesday, the swaps trading platform subsidiary of Seed CX, Seed SEF announced that it has launched user acceptance testing of its physically-settled bitcoin derivatives which will carry on through early August.

Seed SEF, which has been licensed as a Swap Execution Facility by the Commodity Futures Trading Commission (CFTC) since 2016, has opened its UAT environment, allowing customers to start trading on Seed SEF’s matching platform.

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Unlike most physically-settled digital asset derivative contracts, the bitcoin swap to be listed by Seef SEF will be both margined and physically-settled. This will allow market participants to enter into a leveraged position to buy or sell bitcoin for physical delivery at a later time, the statement said.

Seed SEF at final stage of launching BTC derivative product

According to the statement, the platform aims to facilitate the trading of derivatives overlaying digital assets for institutions and sophisticated customers. The Seed CX subsidiary worked closely with regulators before launching the UAT environment.

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Brian Liston of Seed CX, Seed SEF
Brian Liston, co-founder of Seed CX
Source: LinkedIn

Commenting on the announcement, Brian Liston, Seed CX co-founder and President said: “We’re very excited to have begun user testing of our physically-settled Bitcoin derivative product.”

“We’re at the final step. With the successful completion of testing and regulatory review, we will be able to launch a much needed margined, physically-settled digital asset derivative to U.S. customers.”

Over time, the swaps trading platform will list weekly and monthly contracts so that there will be four upcoming weekly contracts, three upcoming serial monthly contracts and two upcoming quarterly monthly contracts available for trading on the platform.

“Weekly contracts will expire on the Friday of each week. Monthly contracts, including the quarterly monthly contracts, will expire on the third Friday of the month to which the contract relates,” the statement said.

Zero Hash LLC, an affiliate of Seed SEF, will handle the delivery of the platform’s derivative products. Already, Zero Hash serves as the calculation agent and delivery facility for numerous trading venues, including Seed SEF.

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