London-based Bitcoin Derivatives Platform Debuts

NEW YORK (InsideBitcoins) – What does it take to launch a bitcoin derivatives platform? In the case of Cryto Facilities, a London-based broker that launched just such a platform yesterday, it takes a former senior trading architecture designer at BNP Paribas/Socit Gnrale and a former executive director in credit quantitative modelling at Goldman Sachs with a PhD in financial engineering.
The platform initially hosts a forward contract on the USD price of bitcoin. The derivative serves to hedge against bitcoin volatility – or to benefit from future swings in the bitcoin price. The firm has developed an integrated risk management, margining and settlement framework tailored to the high volatility of bitcoin.

This post was published at Inside Bitcoins on Feb 26, 2015.