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Owners of NY Stock Exchange is Creating a Crypto Currency Trading Platform

1 week ago 279 views

It was a breaking news from the New York Times on recent development going on in the New York Exchange. According to the report from the New York Times, Intercontinental exchange parent company of the New York Stock Exchange is developing an online platform which seems to be an approach of cryptocurrency.

This online exchange geared toward large institutional investor seems to be the kind of financial heavyweight the crypto market is waiting for. According to the New York News, this platform will allow big investors to buy and bitcoin following with the introduction of Swaps – another financial instruments that could be linked to bitcoin.

From the report it was explain that swap contract would be an advancement on dollar to bitcoin trading. Trading bitcoin won’t base on converting currencies to bitcoin alone any longer instead trading will base on swap contract i.e. trading will base on certain rules and regulation of the Commodity Future Trading Commission and to operate clearly under existing laws. This kind of tech is currently offered by cryptocurrency start up LedgerX which might appeal more to cryptocurrency investors looking to eschew institutional banking’s entrenched players.

However, according to the report “the whole undertaking could still fall apart” it seems details of the plan are not yet locked in and the whole idea is still being spearheaded by the Intercontinental Stock Exchange, the NYSE parent company. Verifying of this fact, an ICE man spokesperson has refused to give comments on this fact.

The Georgia – based Intercontinental Exchange, or ICE entered the market for digital currency via a cryptocurrency which went live in March.  Notably, the Wall street bank Goldman Sachs said it was working on a cryptocurrency trading desk which went live earlier in May, The New York Times Earlier reported. A slew of trading firms have been trading crypto, including the Chicago-based HFTs such as DRW and Jump trading.

Whereas ICE's exchange competitors — Cboe Global Markets and CME Group — have jumped into the crypto market via bitcoin futures, ICE has focused on data, and adding transparency to the marketplace known for its wild price swings and fraud via its data-feed product.

Early this year in April it was announced that Nasdaq entered into partnership with crypto-exchange Gemini. It was reported that the company is also planning on launching a future market for crypto. Also Nasdaq’s CEO Adena Friedman said the firm could one day launch a crypto exchange.

If eventually ICE were to follow through its reported plan of approaching cryptocurrency, it would be first establish equities exchange operator to launch such a venture in the US. Also the venture would potentially be ahead of other existing-exchange venues, due to the lack of mature structure and standard like NYSE and Nasdaq.