FalconX Becomes First & Only CFTC Registered Cryptocurrency Swap Dealer

FalconX Becomes First & Only CFTC Registered Cryptocurrency Swap Dealer

FalconX is now the first and only cryptocurrency swap dealer registered with the National Futures Association (NFA) and one of the first crypto-focused Primary Level Members of the International Swaps & Derivatives Association (ISDA).

The registration solidifies FalconX as the most comprehensive prime broker for digital assets, offering the only platform that gives U.S. institutional investors access to the fast-growing OTC crypto derivatives market to conduct safe and regulated trading.

“This is a tremendous opportunity to bring regulated derivatives trading to the U.S.,” said FalconX CEO and co-founder Raghu Yarlagadda. “With this registration, we’re creating a venue for our clients to trade OTC crypto derivatives, while delivering the trust and security our institutional partners expect.”

With this new registration, FalconX clients can now enter into forwards, options and swap transactions with the industry’s most trusted framework. Clients will not incur changes to their operational processes using FalconX’s established standards for timing, valuation and confirmation. By partnering with FalconX as a regulated counterparty, investors can offer crypto derivatives to their client base with well-managed risk exposure.

With most of the crypto derivatives trading volume on exchanges outside the U.S., domestic institutional investors have had limited access—until now. As the first registered U.S. crypto swap dealer, FalconX is bringing this groundbreaking opportunity to U.S. investors on the only crypto trading platform built exclusively for institutions that offers complete digital asset management.

“The crypto derivatives ecosystem is at a critical growth juncture, and we are very excited to help accelerate its trajectory by providing simplified, regulated access to OTC derivatives for our institutional clients. As a principal dealer, we always have our clients’ best interests in mind.” Yarlagadda said. “It’s also a huge opportunity for us to be a market leader while offering our signature service to a wider range of investors.”

As the first primary member of the ISDA with a crypto focus, FalconX will collaborate with ISDA in developing contractual and operational standards for crypto derivatives, creating guidelines for the broader cryptocurrency industry on how to provide secure, regulated access to OTC derivatives.

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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.

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