B2C2 launches electronic trading of OTC options for crypto

B2C2, the world’s largest provider of crypto liquidity and pioneer of institutional digital assets, has gone live with electronic options trading for the over-the-counter (OTC) crypto market.

“Giving our clients the ability to trade OTC options electronically reflects significant growth in institutional demand for derivatives over the past 12 months,” said Johannes Woolard, Head of Options, B2C2.

“Customers are looking for a more comprehensive set of tools to access, secure and trade crypto easily and conveniently. Institutions turn to us as a well-established and innovative crypto-native liquidity provider with the reliable and robust trading infrastructure they need.”

B2C2 has been offering “voice via chat” OTC options trading since October 2021.

B2C2 now offers electronic OTC options via its Single Dealer Platform.

Options Chain provides a powerful visual interface that enables “point and click” electronic trading of OTC crypto options for the first time. This functionality transforms OTC options trading by giving traders a choice on how to execute OTC trades.

In addition, B2C2’s options chain brings streaming prices to options traders, giving them a comprehensive overview of live OTC prices for all strikes in one place for the first time. Traders will no longer need to request prices individually – they can now see the entire surface at a glance – transforming execution.

The new OTC options functionality is fully integrated into B2C2’s crypto-native spot, CFD and loan trading platform. Options post-trade reporting is already active with a trade blotter and aggregated positions, along with automation around B2C2’s institutional-grade ISDA margin functionality. New features will be added incrementally over the next few months, including an options calculator with Request for Quotation (RFQ) functionality on complex derivative structures. As with B2C2’s other OTC products, all functionality will be available on the B2C2 portal as well as via API.

Following the market downturn, the crypto derivatives market has grown on the exchange to $3.12 trillion by July 2022, a 13% month-on-month increase, according to CryptoCompare, and accounts for more than 60% of total crypto volume. As in other asset classes, such as FX, OTC trading volumes are expected to grow to a multiple of “over-the-counter” trading.

The OTC market has a number of features, but they are not available on the exchange.

These include: flexible contracts tailored to a client’s specific needs and strategy; a bilateral counterparty relationship built on trust and with the ability to provide credit; technology, operations and risk management best practices designed for institutional needs and standards.

B2C2 has been at the forefront of global market developments since it was founded in 2015.

The firm executed a pioneering bilateral crypto non-deliverable forward (NDF), which opened access for banks last year. In 2022, it joined ISDA and was the first crypto trading firm to join FIA.

Sygnum Bank, the world’s first digital asset bank, has executed the first trade with the B2C2 Options Chain.

Dominic Lohberger, Head of Trading at Sygnum Bank, commented: “B2C2 takes institutional trading of crypto derivatives to the next level. As a regulated digital asset bank with institutional clients, Sygnum is proud to execute the first OTC trade with the B2C2 options chain. Together we pave the way for the future of electronic crypto trading.”