FalconX and CF Benchmarks Partner to Create Institutional-Grade Derivatives Contracts

FalconX collaboration with CF Benchmarks poised.to revolutionize the cryptocurrency industry by providing unprecedented access to regulated derivative instruments

FalconX, the most reliable digital assets prime brokerage for the world's leading institutions, is releasing the only crypto derivatives offered by a CFTC-regulated swaps dealer. These contracts are settled against indices administered by CF Benchmarks, the FCA regulated cryptocurrency index provider.

The contracts offer regulated access to the crypto derivatives market, via swaps, options and non-deliverable forwards (NDFs) that settle to single asset reference rates provided by CF Benchmarks.

The contracts provide exposure to bitcoin settled against the CME CF Bitcoin Reference Rate, and to ether settled against the CME CF Ether-Dollar Reference Rate. FalconX is also offering a range of derivatives products, settled against regulated CF Benchmarks single asset reference rates, so clients can gain exposure to other leading cryptocurrencies.

"Derivatives benchmarked against resilient and regulated indices are the primary route institutions take to gain exposure to the crypto asset class," said Sui Chung, CEO of CF Benchmarks. "We are delighted that FalconX will provide exposure to a host of digital assets through our market-leading benchmarks, including the CME CF BRR. This will encourage further activity in the fastest-growing area of institutional finance today."

CF Benchmarks is a key part of the crypto market's infrastructure. Its indices have settled the regulated crypto derivatives contracts from CME since launch in 2017. Through the use of the same spot reference source, FalconX clients can tap into the liquidity complex around the CME CF BRR, that includes the most liquid regulated instruments such as the CME crypto futures and ETFs listed in multiple jurisdictions. This development is poised to have a profound impact on the way institutional investors interact with digital assets, ultimately driving increased adoption and growth within the sector.

By offering a suite of benchmarked derivatives contracts, FalconX and CF Benchmarks are addressing the growing demand for secure and transparent investment products in the rapidly expanding digital asset space. Institutional investors can now confidently gain exposure to cryptocurrencies, knowing they are backed by a regulated and reliable infrastructure. The integration of these benchmark indices into FalconX's offerings will enable clients to efficiently manage risk and seize opportunities in the burgeoning world of digital finance.

As well as enhancing overall market stability and fostering trust among institutional investors, this partnership paves the way for future innovations in the crypto derivatives landscape. As more institutions embrace digital assets, the collaboration between FalconX and CF Benchmarks will prove instrumental in shaping the trajectory of the industry, ultimately spurring further advancements in technology, regulation, and product offerings.

"Regulated derivatives are critical instruments for institutional investors to safely access digital assets," said Baris Cetinok, Chief Product Officer of FalconX. "We are proud to be able to deliver the industry's best in class regulated derivatives offering - purpose built for the world's leading institutional investors."

The partnership between FalconX and CF Benchmarks signifies a major milestone in the evolution of the digital asset ecosystem. By equipping clients with the tools and resources required to navigate the ever-changing cryptocurrency landscape, this alliance sets a new standard for transparency, reliability, and innovation in the world of institutional finance.

Share article

This material is for informational purposes only and is only intended for sophisticated or institutional investors. This material is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of FalconX or any of its affiliates. Any information contained in this material is not and should not be regarded as investment research, debt research, or derivatives research for the purposes of the rules of the CFTC or any other relevant regulatory body. Prior to entering into any proposed transaction, recipients should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences of the transaction. This material does not constitute investment advice. To the extent permitted by law, FalconX does not accept any liability arising from the use of this communication. This material may contain information regarding structured products which involve over the counter derivatives. Pursuant to the Dodd-Frank Act, over the counter derivatives are only permitted to be traded by “eligible contract participants” (“ECP”s) as defined under Section 1a(18) of the CEA (7 U.S.C. § 1a(18)). Do not invest in a structured product unless you are an ECP as relevant and fully understand and are willing to assume the risks associated with the product. Solios, Inc. is registered as a federal money services business with FinCEN. FalconX Bravo, Inc. is provisionally registered with the U.S. Commodities Futures Trading Commission (CFTC) as a swap dealer. FalconX Limited is a registered Class 3 VFA service provider under the Virtual Financial Assets Act of 2018 with the Malta Financial Services Authority. FalconX Limited, FalconX Bravo, Inc., nor Solios, Inc. are not registered with the Securities & Exchange Commission or the Financial Industry Regulatory Authority. FalconX Foxtrot Pte Ltd and FalconX Golf Pte. Ltd. are not regulated by the Monetary Authority of Singapore.

News, directly from FalconX