tFOSE signs Brave New Coin to power its Canadian crypto options exchange
Fledgling Canadian derivatives exchange Toronto Futures Options Swaps Exchange (tFOSE) has announced a multi-year partnership with New Zealand based digital asset trading, research and data company Brave New Coin. The agreement will see Brave New Coin design, calculate and administer a suite of cryptocurrency indices to power cash-settled options trading on tFOSE.
tFOSE is currently seeking regulatory approval in Canada.
The indices will be available for production in Q3 2020, beginning with the tFOSE BNC Litecoin Index. Cryptocurrency cash-settled options trading is expected to launch on tFOSE in 2021, subject to regulatory approval.
Canada has not yet made significant progress in bringing institutional-grade cryptocurrency products to the market. The parties stated that Brave New Coin’s indices will enable tFOSE’s clients both in Canada and globally to trade crypto derivatives on a fully-regulated Canadian exchange (with the regulatory approval still pending, as note above). This allows traders to diversify their portfolios and exposure, hedge risk, and access an emerging asset class without having to directly hold the underlying cryptocurrency as they are cash-settled products.
“After extensive research and due diligence, tFOSE selected Brave New Coin for its deep expertise in generating insightful crypto market data and indices,” said James Beattie, President and CEO at tFOSE. “Brave New Coin meets all of our needs, 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.”
“The crypto ecosystem is maturing and demand for regulated investment products from institutional markets is growing,” said Fran Strajnar, CEO and Founder of Brave New Coin. “Our partnership with tFOSE furthers our role as a leader in market data, indices, and benchmarking for crypto assets. We’ve dedicated our company to building products that bring institutionalgrade services to this emerging asset class.”
Brave New Coin provides data and index solutions for several partners including NASDAQ, Amazon Alexa, BTSE.com, TPICAP and Dow Jones Factiva. (When you ask Amazon’s Alexa for the price of any cryptocurrency, the answer comes from Brave New Coin’s data engine). Its partnership with tFOSE will see BNC providing unique, specialized indices to tFOSE. BNC and tFOSE are already in the process of designing, developing, and testing the indices.