B2C2 Launches First Electronic OTC Options Trading Product for Crypto Markets

October 31, 2022 - B2C2, a crypto liquidity and institutional digital asset provider, announced that it is now live with electronic options trading for the over-the-counter (OTC) crypto market.

B2C2 is now offering electronic OTC options via its Single Dealer Platform. Options Chain provides a visual interface enabling 'point & click' electronic trading in OTC crypto options. This options trading functionality aims to give traders a choice of how to execute off-exchange trades.

B2C2’s Options Chain will also bring streaming prices to options traders, providing a view of live OTC prices for all strikes in one place.

The new options OTC functionality is fully integrated into B2C2’s crypto-native spot, CFD and loans trading platform. Options post-trade reporting is already live 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 Quotes (RFQ) functionality on complex derivatives structures. As with B2C2’s other OTC products, all functionalities will be available on the B2C2 portal as well as via API.

Following the market downturn, the crypto derivatives market has grown on-exchange to $3.12 trillion in July 2022, a 13% monthly increase, according to CryptoCompare, and makes up more than 60% of total crypto volumes.

The OTC market has a number of features including:
• Flexible contracts tailorable to a client’s specific needs and strategy
• A bilateral counterparty relationship built on trust and with the ability to extend credit
• Technology, operations and risk management best practices designed for institutional needs and standards

“Providing our clients with 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. “Clients are looking for a more comprehensive set of tools to access, hedge and trade crypto simply and easily. Institutions turn to us as a well-established and innovative crypto-native liquidity provider with the reliable and resilient trading infrastructure they require.”

Dominic Lohberger, Head of Trading, Sygnum Bank, said, “B2C2 is taking institutional crypto derivatives trading to the next level. As a regulated digital asset bank with institutional clients, Sygnum is proud to be executing the first OTC trade with the B2C2 Options Chain. Together we are setting the path for the future of electronic crypto trading.”

B2C2 was founded in 2015 and joined ISDA in 2022.