The European cryptocurrency landscape has a new entrant, pledging to offer better trading regulation and transparency. One Trading claims to be the first in Europe to issue fully regulated, cash-settled perpetual futures on digital assets and has launched a dedicated venue for crypto futures trading. This development marks a landmark step in the acceleration of the crypto trading ecosystem within the European Union.
Regulated Trading: A First in Europe
One Trading’s platform functions under an Organized Trading Facility (OTF) license. This license granted by the Dutch Authority for the Financial Markets (AFM) has an important benefit. It gives scope to the exchange to issue derivative products, inclusive of crypto futures, within the regulatory confines of the EU. This is in contrast to most other crypto exchanges, where One Trading’s compliance with industry standards differentiates it.
Initial Offerings: Bitcoin and Ethereum Trading Pairs
From the onset, the exchange offered trading pairs for two of the most sought-after digital currencies, namely Bitcoin (BTC) and Ethereum (ETH). As with other pairs, these are traded against the euro, which links the region’s fiat currency market with the cryptocurrency world.
Speed and Efficiency: A High-Performance Platform
One Trading prides itself on the speed and efficiency of its proprietary system. Real-time settlement of derivatives positions is claimed to be supported 24/7, with One Trading processing transactions in less than a minute. The infrastructure is built for throughput and is capable of handling large volumes of trading activity in excess of 1 million orders per second. One Trading further claims public execution latencies are below 70 microseconds, an industry low, indicating the company’s obsession with speed and low slip.
Scalability and Integration: A Modern Trading Model
The architecture of the platform is designed to have horizontal scalability aimed at growth, targeting increasing market demand. Another distinguishing characteristic is the integrated product creation and trading model, which purports to operate without external clearinghouses. This internal clearing approach aims to enhance the speed and efficiency of trading while lowering costs.
Strategic Testing: Cultivating Trust and Dependability
One Trading has gone through public testing with a few selected institutional users as market participants. Some of these users have now transitioned to being active liquidity providers on the platform and offered useful suggestions during the initial development.
The Platform’s Development: Entering a New Era of Regulated Crypto Trading
One Trading is introducing its offering into the market as yet another building block towards maturation and improving structure to develop a compliant framework for more sophisticated cryptocurrency trading. Through these statements, company representatives have marketed the platform as an alternative to more heavily offshore jurisdictions that usually have more expensive operational costs and minimal regulatory oversight. One Trading seeks to draw in institutional clients who will use crypto derivatives, hoping to change the landscape for trading these products in Europe. The company also aims to widen the scope of access to retail clients later.
