RULEMATCH, a new crypto trading venue, serves banks and securities firms which are already active in the crypto market has launched, offering a combination of integrated, post-trade settlement and ultra-low latency for participants including hedge funds and high frequency traders.
RULEMATCH facilitates multilateral net settlement among participants, as well as addressing counterparty risk among participants with a strict delivery-vs-payment process and collateral requirements to protect against counterparty default.
According to the business, key benefits include execution times as low as 30 microseconds and a system which allows for trading with up to 75% less upfront liquidity required when compared to existing trading venues.
David Riegelnig, chief executive of RULEMATCH, said: “Despite often going unnoticed, a growing number of banks and financial institutions have actually been quite active in the crypto market. But, as we all know, they have faced challenges due to the many fundamental deficiencies in existing market infrastructure – capital efficiency, counterparty risk, compliance and latency.
“On RULEMATCH, these banks and their institutional clients are now expanding their activities and deploying many of the same strategies that they have used in traditional markets. This bodes well for liquidity and development in the market – and also for the next wave of evolution in digital assets.”
The interbank crypto trading venue today announced it has launched BTC and ETH spot trading against USD for its participants.
RULEMATCH acts exclusively as a market operator and is never a counterparty to a trade, nor does the venue offer brokerage or market making services. In addition, RULEMATCH does not provide custody except for the settlement process.
According to the business, “RULEMATCH participants trade in an anonymous central-limit-order book with liquidity guaranteed by designated market makers including Flow Traders, who has entered into a strategic partnership with RULEMATCH to provide institutional-grade liquidity.”
RULEMATCH is supported by a select group of investors which includes: Consensys Mesh, Flow Traders and FiveT Fintech (formerly Avaloq Ventures).
Participants are limited to banks and securities firms from select countries, with seven members so far including: BBVA, DLT Finance, and a Swiss cantonal bank and more currently being onboarded.
The venue utilises Nasdaq technology in order to perform pre-trade risk checks, as well as trade matching and market surveillance.
Magnus Haglind, senior vice president and head of products, marketplace technology at Nasdaq, said: “As traditional and digital asset markets increasingly converge, our institutional grade technology is well positioned to support the ongoing development of the digital asset ecosystem.”