Crypto Facilities Gets FCA Nod to Set up Crypto Futures Venue
Crypto Facilities, which is a subsidiary firm of the popular Kraken Cryptocurrency exchange, recently announced that it had received the much-awaited MTF or Multilateral Trading Facility License. The MTF License is awarded by the United Kingdom’s Financial Conduct Authority or FCA. The MTFs function more or less like a stock exchange but are independent and conduct their own trading venue. The Multilateral Trading Facility uses advanced electronic systems like the stock exchange to function as it is a market built on securities.
The Crypto Facilities has said that it is the first of its kind self-regulatory independent trading venue in Europe. It also added that the acquisition of license would now enable the company to add to its extensive list of products. However, Crypto Facilities did reiterate that it would ensure that all the regulatory parameters are strictly adhered to in the process. Conventionally, the MTF licenses are only issues to large investment banks or approved financial market operators with good standing in the market. It allows more participation by the retail investors so that they can trade in the financial securities freely.
The move by the FCA to provide the MTF license to Crypto Facilities has enabled the latter to offer its services comprehensively to institutional clients. Getting access to trade in crypto derivatives for constrained investors and retail traders in Europe wasn’t possible earlier. The CEO and co-founder of Kraken Cryptocurrency Exchange, Jesse Powell, said that getting the MTF license would help the constrained investors to trade comfortably on the venue that is regulated and offers them flexible trading options.
Jesse also said that the only reason why Kraken engaged in extensive efforts to acquire MTF license is to ensure that the company is able to enhance its outreach. In the booming crypto market, it is essential to ensure that more and more people can get access to crypto, and it is what Multilateral Trading Facility will do. The approval for MTF license for the Crypto Facilities by FCA came just a few days after it engaged in a massive cryptocurrency study. The study has revealed that all of the United Kingdom’s citizens having cryptocurrency like bitcoin era as investments have increased drastically in the last couple of years and the number is steadily increasing.
One other reason why many institutional investors, as well as regulated institutions, prefer the Multilateral Trading Facility is because it offers them a level playing field for all the market participants without any added or undue advantage to any particular investor. There is absolutely no discrimination among the members of the platform, and there is a transparent process through which the buyers are matched with the sellers. The user is only able to buy on the platform at the fixed price when there is a sell order for the same price is available.
One other reason why the investors so highly trust the MTFs is that they are European Union’s Markets follow the Financial Instrument Directive II. The directive is not only aimed at boosting the competition in the crypto market but also to provide investors with an enhanced level of protection.