D2X Goes Live with Regulated 7 Days Per Week Crypto Derivatives Trading

LiquidityFinder was fortunate to catch up with D2X Co-Founder Theodore Rozencwajg on launch day as Europe's first MiFID-regulated crypto derivatives futures & options exchange operating 7-days-a-week.

Theodore Rozencwajg, Co-Founder, D2X

"After over 3 years of hard work and dedication, D2X is launching during exciting times and is paving the way towards next-generation market infrastructure," said Rozencwajg. "Institutional demand for regulated exchanges has never been higher and we are witnessing a truly unique moment for crypto. Market participants should not have to choose between regulatory compliance or 7-days-a-week trading, and D2X solves this."

The Amsterdam-based venue aims to bridge the gap between traditional finance infrastructure and crypto-native trading venues by offering off-exchange collateral management and robust counterparty risk mitigation, while maintaining continuous trading through weekends when traditional venues are closed.

Operating under a Multilateral Trading Facility (MTF) license granted by the Dutch Authority for the Financial Markets (AFM), the exchange has launched with Bitcoin-Euro and Ethereum-Euro calendar futures. USD-denominated futures pairs for both cryptocurrencies will follow in Q1 2024, with options on these pairs scheduled for Q2. 

Flow Traders, which has backed D2X since December 2021, joins as one of three anchor market makers. "They've been supporters of the exchange and investors also from December 2021," said Rozencwajg. Basis Capital Markets and Algorithmic Trading Group round out the day-one market makers. 

Taking time out from the launch day to speak with LiquidityFinder, Rozencwajg explained the key market challenge D2X is addressing: "Market participants have to make a suboptimal choice when trading crypto derivatives. One option is trading on crypto native exchanges which offer trading seven days a week and a wide variety of products, but are typically unregulated where you face the exchange as counterparty and custodian of the collateral. The alternative is legacy traditional exchanges. These exchanges are regulated and centrally cleared - very robust from a risk management standpoint with high standards in regulatory compliance. But because they are centrally cleared, they are not operational over weekends, introducing gap risk into the trading experience with much higher margin requirements."

Frederic Colette, CEO, D2X

Frederic Colette, CEO at D2X commented: "By launching a platform accessible on weekends and supporting off-exchange collateral, D2X bridges longstanding gaps in crypto derivatives trading. We have developed a market that surpasses traditional limitations while maintaining the regulatory and compliance standards institutional players expect."

The exchange targets institutional clients globally across key jurisdictions including the EU, UK, Switzerland, Singapore, Hong Kong, and the US. With margin requirements of around 15% for Bitcoin and 20% for Ethereum futures, D2X aims to offer more competitive rates than traditional venues, made possible by its pre-funded model and seven-day operation.

Earlier this year, D2X secured a €10 million Series A round led by Point72 Ventures, bringing its total funding to over €16 million. The company has also established partnerships with technology providers Talos and Actant to facilitate institutional connectivity.