Canadian exchange tFOSE to offer crypto derivatives

Once approved, the Toronto Futures Options Swaps Exchange (tFOSE) will enable its clients in Canada and globally to trade cash-settled crypto derivatives on a fully regulated Canadian exchange and clearinghouse. Brave New Coin (BNC) will be the crypto index builders for tFOSE – designing, calculating and administering a suite of cryptocurrency indices to power tFOSE’s cash-settled options trading. tFOSE expects production on the indices to be completed during Q3 2020 with cash-settled crypto options trading beginning in early 2021.

Canada has not yet made significant progress in bringing institutional-grade cryptocurrency products to the market, but once live, the tFOSE initiative will allow traders to diversify their portfolios and exposure, hedge risk and access an emerging asset class on a regulated Canadian exchange – without having to directly hold the underlying cryptocurrency as they are cash-settled products.

Building crypto indexes

Speaking about creating crypto indices, BNC CEO and founder Fran Strajnar says the crypto ecosystem is maturing, with demand for regulated investment products from institutional markets continuing to grow. He says the partnership with tFOSE furthers BNC’s contribution to the sector as a provider of verified market data, crypto indices, and benchmarking for crypto assets.

At tFOSE, CEO James Beattie says the exchange’s vision is to drive derivative market solutions, repatriate order flow to Canada and unlock new global markets. He says BNC was selected as tFOSE’s crypto index builders after a thorough evaluation of providers in the market. ”BNC meets all of our needs,” he says, “taking a unique approach to index design, methodology, and governance that will help tFOSe meet the specific, exacting needs of both our retail and institutional investors.”

Brave New Coin provides sector data and crypto index solutions for several partners operating in the crypto space – including NASDAQ, Amazon Alexa, BTSE.com, TPICAP and Dow Jones Factiva.