StoneX Successfully Executes First BTC Cash-Settled Swap
- The counterparty was Liquidity Solutions Global.
- USD cash-settled crypto swaps were made available to institutional FX clients.
According to the press release, StoneX’s institutional FX client, Liquidity Solutions Global, the London-based subsidiary of DriveWealth Holdings and a liquidity provider to multiple cryptocurrency exchanges, was the counterparty to the trade.
Earlier this month, the firm’s institutional FX division began offering USD cash-settled crypto swaps to institutional FX clients. The new offering complements the company’s traditional institutional FX products, including more than 40 currency trading pairs spanning major and emerging market currencies, forwards, non-deliverable forwards and options.
“As with any other asset class, investors need to connect to digital assets markets through a trusted partner who can secure best execution and meet their compliance and custody needs. Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody. As a result, many regulated institutions are looking to the swaps market as a cost-effective way to gain access to crypto price exposure without the regulatory burden, cost and additional risks traditionally associated with spot crypto ownership,” Eric Donovan, the Global Head of Institutional FX, commented.
StoneX offers execution, post-trade settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 business days or T+2 after the trade is executed, and for listed options and government securities it is usually 1 day after the execution. Conversely in Europe, settlement date has also been adopted as 2 business days settlement cycles T+2.Settlement ExplainedA settlement is also the process of the payment of an outstanding account balance, an open invoice or charge. The electronic settlement system is a relatively new construct that has only become a standard in the past thirty years.For example, in real estate finance, you have settlement when the funds are accepted, and the deed to the property is traders to the new owner. Settlement can also mean an adjustment or agreement reached in matters of finance or business. For example, we have settled with the bank or the credit card company. A number of risks arise for the parties during the settlement process. These are effectively managed by the process of clearing, which follows trading and precedes settlement. By extension, clearing involves modifying those contractual obligations so as to facilitate settlement, often by netting and novation. Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 business days or T+2 after the trade is executed, and for listed options and government securities it is usually 1 day after the execution. Conversely in Europe, settlement date has also been adopted as 2 business days settlement cycles T+2.Settlement ExplainedA settlement is also the process of the payment of an outstanding account balance, an open invoice or charge. The electronic settlement system is a relatively new construct that has only become a standard in the past thirty years.For example, in real estate finance, you have settlement when the funds are accepted, and the deed to the property is traders to the new owner. Settlement can also mean an adjustment or agreement reached in matters of finance or business. For example, we have settled with the bank or the credit card company. A number of risks arise for the parties during the settlement process. These are effectively managed by the process of clearing, which follows trading and precedes settlement. By extension, clearing involves modifying those contractual obligations so as to facilitate settlement, often by netting and novation. Read this Term, clearing and custody services to 52,000 commercial, institutional and global payments clients, as well as to 370,000 retail customers through its Forex.com and City Index brands. StoneX specializes in providing market access and liquidity in all major asset classes across the globe. Over the next year, StoneX plans to expand its crypto products and services to both institutional and retail clients.
Recently, StoneX Group reported a 46% yearly jump in its total revenue between January and March, which is its second quarter of fiscal 2022. It came in at $16.38 billion compared to the previous year’s $11.24 billion.
According to the press release, StoneX’s institutional FX client, Liquidity Solutions Global, the London-based subsidiary of DriveWealth Holdings and a liquidity provider to multiple cryptocurrency exchanges, was the counterparty to the trade.
Earlier this month, the firm’s institutional FX division began offering USD cash-settled crypto swaps to institutional FX clients. The new offering complements the company’s traditional institutional FX products, including more than 40 currency trading pairs spanning major and emerging market currencies, forwards, non-deliverable forwards and options.
“As with any other asset class, investors need to connect to digital assets markets through a trusted partner who can secure best execution and meet their compliance and custody needs. Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody. As a result, many regulated institutions are looking to the swaps market as a cost-effective way to gain access to crypto price exposure without the regulatory burden, cost and additional risks traditionally associated with spot crypto ownership,” Eric Donovan, the Global Head of Institutional FX, commented.
StoneX offers execution, post-trade settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 business days or T+2 after the trade is executed, and for listed options and government securities it is usually 1 day after the execution. Conversely in Europe, settlement date has also been adopted as 2 business days settlement cycles T+2.Settlement ExplainedA settlement is also the process of the payment of an outstanding account balance, an open invoice or charge. The electronic settlement system is a relatively new construct that has only become a standard in the past thirty years.For example, in real estate finance, you have settlement when the funds are accepted, and the deed to the property is traders to the new owner. Settlement can also mean an adjustment or agreement reached in matters of finance or business. For example, we have settled with the bank or the credit card company. A number of risks arise for the parties during the settlement process. These are effectively managed by the process of clearing, which follows trading and precedes settlement. By extension, clearing involves modifying those contractual obligations so as to facilitate settlement, often by netting and novation. Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 business days or T+2 after the trade is executed, and for listed options and government securities it is usually 1 day after the execution. Conversely in Europe, settlement date has also been adopted as 2 business days settlement cycles T+2.Settlement ExplainedA settlement is also the process of the payment of an outstanding account balance, an open invoice or charge. The electronic settlement system is a relatively new construct that has only become a standard in the past thirty years.For example, in real estate finance, you have settlement when the funds are accepted, and the deed to the property is traders to the new owner. Settlement can also mean an adjustment or agreement reached in matters of finance or business. For example, we have settled with the bank or the credit card company. A number of risks arise for the parties during the settlement process. These are effectively managed by the process of clearing, which follows trading and precedes settlement. By extension, clearing involves modifying those contractual obligations so as to facilitate settlement, often by netting and novation. Read this Term, clearing and custody services to 52,000 commercial, institutional and global payments clients, as well as to 370,000 retail customers through its Forex.com and City Index brands. StoneX specializes in providing market access and liquidity in all major asset classes across the globe. Over the next year, StoneX plans to expand its crypto products and services to both institutional and retail clients.
Recently, StoneX Group reported a 46% yearly jump in its total revenue between January and March, which is its second quarter of fiscal 2022. It came in at $16.38 billion compared to the previous year’s $11.24 billion.