Kraken rolls regulated cryptoderivatives acting in Europe that comply with the European Union’s markets in Directive on Financial Instruments (MiFID II).
Crypto Exchange’s Eternal and Fixed Maturity Future contracts will now be available to retail and institutional customers in the European Economic Area (EEA), the company said Tuesday.
Permission to trade cryptoderivatives came via a Cypriot investment company called Greenfield Wealth, which Kraken acquired earlier this year and secured the Exchange A License from the Cyprus Securities and Exchange Commission (CySec).
Crypto Derivatives room has seen some significant features recently, with big players such as American-Bearing Coin Base (Coin) that acquires the leading trading platform. In Europe, exchanges such as Bitstamp and Gemini enter the fold, while MiFID II license contained by the FTX EU is acquired by backpack.
Kraken also made a $ 1.5 billion acquisition of Ninjatrader to operate derivatives trading in the United States as well as its European license, acquired Kraken Crypto facilities, a British FCA-regulated crypto futures platform, in 2019.
Kraken’s joined approach means that the contracts that European clients will have access to already commands a relatively high volume, about $ 1 billion and $ 2 billion per year. Day, according to Shannon Kurtas, exchange manager at Kraken.
“This does not offer access to a new trading site or new contracts,” Kurtas said in an interview. “These are existing contracts that have material volume trading on them, and along with it comes established liquidity, better execution costs and FIAT rails to get collateral in and out efficiently and cheaply.”
The recent introduction of Kraken’s Embed Crypto Connectivity application means that neobanks and fintechs in Europe can also offer derivatives as well as the place of their clients, Kurtas said.
Fetching licenses in smaller and undoubtedly more quick jurisdictions such as Cyprus and Malta have become a well -traced path for crypto companies with deep pockets.
“More Kvikk is probably a fair characterization,” Kurtas said. “There has also been an established set of companies, especially in the CFD room, which has traditionally offered retail access to FX-derivatives and CFDs, and therefore there is a kind of nexus of individuals, companies and know-how if you want, in the area of these products.”
