Dutch Regulator Grants One Trading Europe's First OTF License for Crypto Futures

One Trading, a European crypto-asset exchange, has received an Organised Trading Facility (OTF) License from the Dutch financial market regulator, establishing it as a MiFID II trading venue. This license, the first of its kind granted in the EU in three years, allows One Trading to offer crypto futures trading to both retail and professional clients.

The company's platform will be the first in Europe to provide cash-settled perpetual futures trading, including for retail investors. One Trading's proprietary technology enables real-time settlement of derivatives positions and integration of custody and settlement on distributed ledger technology (DLT).

Joshua Barraclough, Founder and CEO, One Trading

Joshua Barraclough, Founder and CEO of One Trading, stated, "We are thrilled to have achieved this milestone, which represents the culmination of years of hard work and innovation. The long-term vision of the company is to enable all customer types to go long or short on any asset, use any asset as collateral, settle everything instantly, and perpetually roll contracts. Our team has been dedicated to developing a platform that not only meets but exceeds the highest regulatory standards. With this licence, we are well positioned to introduce new regulated products and offer institutional-grade solutions to all customer types starting with BTC and ETH products where no onshore EU regulated venue currently exists. This is just the beginning of our journey to redefine the landscape of digital asset and traditional security trading."

The platform aims to simplify and improve upon traditional futures trading, offering what it describes as more precise and capital-efficient products compared to those provided by established venues like CME or Eurex. One Trading's integrated approach eliminates the need for external clearing, potentially reducing costs associated with post-trade processes.

General Counsel Mario Hoessl-Neumann commented on the regulatory process: "It has been a great experience working very closely with the Dutch regulators throughout much of this process, and we appreciate their vision and foresight to bring a new market structure for regulated derivatives trading to the EU. By launching a novel form of financial instruments with purpose-built tech and the seamless integration of DLT-based assets on the One Trading platform, we are not just providing European clients with the first onshore alternative to unregulated exchanges. More fundamentally, we are complementing - and in some important ways replacing - traditional structures for how regulated derivatives such as futures are traded. It has always been a core value to us to maintain equal capabilities for professional and retail clients, and it is great to see that we are now first in Europe to bring to life a trading venue that truly works for all."

One Trading plans to initially offer Bitcoin and Ethereum products, filling a gap in the EU market for regulated onshore venues trading these assets. The company was advised on its license application by legal firms A&O Shearman and Freshfields Bruckhaus Deringer.