Tassat, Blockfills Roll Out Trade at Settlement Product for Bitcoin
Tassat, New York based financial technology provider, is collaborating with Blockfills, a digital asset market maker, to unveil a new product, namely institutional Trade at Settlement (TAS) on spot Bitcoin (XBT/USD).
As per a news publication by Hedgeweek, Blockfills, which is an expert in digital assets market making, trading and prime brokerage, will collaborate with Tassat, earlier known as trueDigital to unveil the new product by mid-December.
TAS is a unique kind of electronic order book that facilitates buyers and sellers to speculate at precise or nearby settlement price fixed during a predetermined period.
The product has been structured to minimize uncertainty and to remove slippage issues during execution by fixing a price for participants to speculate.
On a contrasting note, TAS developers assert that retail spot exchanges carry a lot of risk and murkiness, in addition to price volatility and considerably wider spread.
For the Bitcoin (XBT/USD) TAS investment vehicle, Tassat’s Bitcoin (BTC) indicative rates, created from collected institutional-size quotes from more than ten international over-the-counter electronic asset market makers, will confirm the settlement price for a given period of time.
Blockfills trading platform framework will be utilized to administer order flow, order processing, matching and trade settlement.
Josh Gibson, Tassat’s director of sales elaborated on the benefits of TAS:
“TAS provides a way to offset the risk of price movements on their futures positions and/or rebalance the gamma on option positions with no risk of excessive slippage. With the growth of digital asset derivatives, participants of all kinds will need new and efficient ways to hedge their positions.”
Of late, Tassat succeeded in crossing the initial hurdle in its attempt to unveil its own fully-regulated cryptocurrency derivatives exchange. The US Commodity Futures Trading Commission (CFTC) endorsed the transition from being a financial services company to run an exchange listing options and futures contracts by Tassat, under the agency’s supervision.
Back in March 2019, Tassat, also referred to as trueDigital, collaborated with cryptocurrency data company Kaiko and crypto assets analyzation firm Inca Digital Securities to expand the distribution of its OTC fix rates for Bitcoin and Ether (ETH). Inca Digital Securities is backed by ConsenSys.