FTX listed quarterly futures for stocks with 100x leverage, allowing users to trade up on Google, Netflix, Amazon, Tesla, Apple, ALibaba, and Pfizer stock futures. The exchange partnered with the CM-Equity German financial service provider, to offer the service by requiring users to submit their KYC information to the company so let’s read more in the upcoming cryptocurrency news.
Crypto exchange FTX listed quarterly futures on its exchange and gained even more popularity after its leveraged token offering. Enabling users to trade tokenized futures came just two weeks after the exchange ventured into the world of tokenized stock trading. According to the announcement of the company, the tokenized stock futures will track FTX spot markets since their indexes will work the same as futures on other FTX products. There are a few exceptions to this rule which is the first of which futures won’t have any adjustments in the case of an ordinary dividend.
FTX has listed quarterly futures on stocks!https://t.co/JraqRUOoyN pic.twitter.com/54dtLDC1TU
— SBF (@SBF_Alameda) November 10, 2020
The company also said that corporate actions like stock splits and spinoffs will see more future adjustments either by changing denominators or by turning into the futures on the whole basked on the case of spinoffs. To provide brokerage services for tokenized stocks trading partnered with CM-equity AG which is a financial service provider registered in Germany and Digital Assets AG which is a tokenized solution provider based in Switzerland. With the company is a licensed financial institution permitted to offer these products as the users who trade tokenized stocks could be required to come customers of the CM Equity.
This means that the users will have to go through the company’s KYC and compliance measures as well as have their own trading activity monitored by the German company. It’s also important to note that the company doesn’t custody the equities being traded as the tokens itself but keeps it at a third-party brokerage firm. The company, not FTX goes on to provide those brokerage services. The exchanges said that FTX and CM-Equity could collect further information from the users and could require passing a test in order to trade. More compliance measures could also be applied to trading at a later date as the exchange noted.
The users that want to trade both tokenized stocks and futures on tokenized stocks have to be at least KYC level 2 as the exchange said. The service will not be available in certain jurisdictions which include the USA.
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