One Trading Launches First EU-Regulated Crypto Perpetual Futures for Retail

One Trading has launched the first MiFID II-regulated crypto perpetual futures platform in the EU, initially for institutional clients, with retail access to follow. The platform is designed for high-speed, cost-efficient trading of BTC/EUR and ETH/EUR without external clearing needs. Perpetual futures, which feature no expiration date, rapidly gaining popularity in crypto trading due to their continuous nature and integration with spot prices.

One Trading has unveiled the first MiFID II-regulated trading platform for crypto perpetual futures within the European Union, initially targeting institutional investors while planning to broaden access to eligible retail clients shortly. This initiative marks a significant advancement for the firm and the crypto trading landscape.

Operating from Amsterdam under an Organized Trading Facility license from the Dutch Authority for Financial Markets (AFM), One Trading’s platform allows trading of BTC/EUR and ETH/EUR perpetual futures. This sets it apart as Europe’s inaugural regulated cash-settled perpetual futures venue, fulfilling a substantial demand for compliance in the crypto sector.

According to CEO Joshua Barraclough, the launch signifies a pivotal milestone in their commitment to streamline trading by enhancing accessibility, transparency, and cost-effectiveness in the market. This platform is designed for 24/7 real-time settlements with rapid sub-1-minute processing times, capable of handling over one million orders per second with latency figures below 70 microseconds.

The company secured funding last year from SC Ventures, marking its transition from being Bitpanda Pro to One Trading after a successful €30 million funding round. It has also received the requisite regulatory approvals to function as a cryptocurrency trading entity.

Distinctively, One Trading states it is the sole regulated exchange that amalgamates the creation and trading of derivative products without necessitating external clearing, thus potentially decreasing operational costs by eschewing conventional post-trade protocols. The service is currently being tested by various market participants who contribute liquidity to the platform.

Barraclough elaborated that the launching of a fully regulated, integrated onshore exchange for perpetual futures will significantly lower the financial barriers for clients needing access to leveraged trading and eliminate the reliance on unregulated offshore trading venues.

Crypto perpetual futures themselves are innovative financial instruments that combine features of standard futures contracts with unique specifications suitable for the non-stop cryptocurrency market. Unlike traditional futures, these contracts do not have a set expiration, allowing traders to maintain positions indefinitely and making them popular in the crypto trading sphere, with billions in trade volume.

Perpetual futures involve agreements to buy or sell an asset at a specified future date without an end date. They employ a funding rate mechanism to keep the price of the contract in alignment with the current spot market price. Additionally, industry developments include Gemini’s recent in-principle approval from the Malta Financial Services Authority for an Investment Firm license, which will allow it to offer crypto perpetual contracts compliant with MiFID II regulations soon.