CoinFLEX Secures Over $10M in Funding

The round was co-led by Polychain Capital and NGC Ventures, with participation from Divergence Digital Currency and Bitcoin Cash advocate and …

coinflexCoinFLEX, a Seychelles-based physically delivered crypto futures exchange, secured over $10m in funding.

The round was co-led by Polychain Capital and NGC Ventures, with participation from Divergence Digital Currency and Bitcoin Cash advocate and angel investor Roger Ver.

Led by Mark Lamb, CEO, CoinFLEX is a physically delivered crypto futures exchange developed to solve the issues with cash-settled crypto futures contracts and provide high leverage ways to hedge crypto exposure with zero index or settlement manipulation risk. The company is focused on the Asian retail trader market as well as the market for commercial hedging, including mining firms, OTC trading desks and global proprietary trading firms.

CoinFLEX has a trading volume of over $150,000,000 USD.

In order to support this growth and further accelerate liquidity, the company has also announced the launch of its Market Making Program, an initiative aimed at professional proprietary trading firms, hedge funds and institutions within the cryptocurrency industry, to participate in the platform while meeting predetermined monthly objectives.

FinSMEs

26/08/2019

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Why does coinbase participate in a 150-fold leverage exchange investment round and invest …

Similar cases include Digital Currency Group and Polychain Capital. There have been cases in 2019 in which Capital has invested in an offshore …

Coinbase joins 150x leveraged exchange Blade investment round BLADE has raised $4.3 million to approximately 450 million yen, with investments from SV Angel, A.Capital and Slow Ventures in the funding round.

The site has already been opened and a campaign has been announced that transactions up to $100,000 to about 10.5 million yen will be free of transaction fees.

The exchange mimics the commodities of perpetual futures handled by BitMex and others, and leverage is even higher than 100 times that of Bitmex.

Why do Us operators invest in offshore exchanges? There is little doubt that the reason for the investment by businesses in the United States, including coinbase, is that they cannot operate leveraged exchanges in their home countries from a regulatory perspective.

There are leverage restrictions in the United States, and neither Coinbase nor Gemini are offered leverage trading. Even though regulations are now being cleared little by little, there is some suggestion that seed investments in offshore exchanges are being made. It does not shift to the situation in which only fully regulated exchanges are used for at least five years, and offshore exchanges remain to gain some citizenship. And perhaps the investors in this case, including the coin base, are thinking.

You can’t make this investment unless you at least think about it. Similar cases include Digital Currency Group and Polychain Capital

There have been cases in 2019 in which Capital has invested in an offshore futures exchange called CoinFLEX.

Poloniex, the subsidiary of Circle, has established a global subsidiary in Bermuda. Offshore services, the name of these global services, are expected to continue for some time to come, and this is a repeat of the history of the FX and CFD industries.

More information is provided in this report. If offshore exchanges become more regulated in five to seven years, and customers are no longer attracted, companies like this company can absorb their technology and futures management know-how.

Technology and operational know-how can only be acquired by the players who operate it. However, futures and leveraged exchanges can only be operated offshore at this time. That’s why we’re now investing offshore, including coin bases, and preparing to bring them into our country when regulations are cleared in the future.

About Post Author

Miu Lin

Miu is a journalism major and has been writing as a business journalist for various dailies before joining OBN. She currently writes about blockchain, cryptocurrencies and business news.

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Calling Bakkt a ‘crypto exchange’ misses the mark on what they’re actually doing

Coinbase’s acquisition of Xapo could bring the total amount of bitcoin under its control to approximately 4% of the total supply or 860,000 bitcoin.

Quick Take

  • Bakkt launched in 2018 with a lot of promises
  • Yes, we joke about “when Bakkt,” but don’t sleep on the venture
  • It could be the first real-deal custodian, and that could open some big doors

by Frank Chaparro

11 hrs ago · 7 min read

Intercontinental Exchange (ICE) captivated the attention of the entire cryptocurrency market last August with the announcement of Bakkt, a new venture led by former ICE investor relations head Kelly Loeffler, which promised to usher bitcoin into the mainstream.

Then, Bakkt was presented in media reports, especially this gushing Fortune profile, as the panacea to the problems hanging over the nascent bitcoin market, which has been plagued by hacks and has struggled to attract the attention of professional money managers and investors.

“The founding imperative for Bakkt will be to make Bitcoin a sound and secure offering for key constituents that now mostly shun it—the world’s big financial institutions,” wrote Fortune’s Shawn Tully.

“The next step after that could be using Bitcoin to replace your credit card,” he added, referring to big partnerships with Microsoft and Starbucks. Sparse details about the coffee-maker and tech firm’s involvement in Bakkt have been released since August 2018.

As part of Bakkt’s exit from stealth-mode, the firm also promised to launch a bitcoin futures contract in November 2018, which unlike others on the market at the time, would physically settle. On Friday, Bakkt said it would finally roll out the product to clients on Sept. 23. Indeed, the roll out would make it the first firm in the U.S. to offer regulated physically-delivered futures contracts tied to bitcoin — a development many in the market have described as a significant step in the cryptocurrency’s maturation. Of course, provided neither ErisX or LedgerX goes first.

Still, two futures contract tied to bitcoin are a far, far cry from an “open platform that helps unlock the transformative potential of digital assets” described by Loeffler in 2018. At least at first glance.

If there’s one thing worth considering — at least based off my conversations with market makers — betting against Intercontinental Exchange is a fool’s errand. Indeed, Bakkt’s slow and steady approach — an alien concept to the crypto natives among us — might actually turn out to be a winning strategy.

But let’s start with the first point. As I noted in a semi-lucid Twitter thread Friday, Intercontinental Exchange, founded by Loeffler’s husband Jeffrey Sprecher, has been known for pulling off the impossible.

Founded in 2000, Intercontinental Exchange launched as an over-the-counter trading platform for energy, metals, and other commodities. Backed by Goldman Sachs, Morgan Stanley, and Deutsche Bank, it set out to leverage internet technology to ameliorate the experience of trading commodities — specifically, by making it cheaper and more transparent.

In 2013, Nathaniel Popper told the New York Times the story of ICE’s journey from Sprecher’s late nights on his sister’s couch, ruminating over his inability to clinch investors for what was “eating up his money and years of his life” all the way to its mega-purchase of America’s icon of capitalism, the New York Stock Exchange.

It sounds preposterous. A businessman from Atlanta blows into New York and walks off with the colonnaded high temple of American capitalism. But if all goes according to plan, his $8.2 billion acquisition, announced a few days before Christmas, will close later this year. And with that, 221 years of Wall Street history will come to an end. No more will New York be the master of the New York Stock Exchange. Instead, from its bland headquarters 750 miles from Wall Street, Mr. Sprecher’s young company, Intercontinental Exchange, will run the largest stock exchange in the nation and the world.

Indeed, it still sounds preposterous. Almost as preposterous as ICE’s plan to build out Bakkt to serve as the backbone of the entire cryptocurrency ecosystem.

Don’t sleep on ICE. In its earliest days ICE grew quickly, expanding with the acquisition of London-based International Petroleum Exchange in 2001, then the New York Board of Trade in 2005. In 2008, ICE launched a clearinghouse for credit default swaps following the financial crisis. Two years later, Bloomberg News dubbed Sprecher “The Sultan of Swaps” for quickly growing the business to clear $10 trillion by 2010.

To be sure, in some respects, ICE has been a bit of a disappointment in recent years, acquiring more than creating.

“They were excellent in their formative years and made a load of dollars,” said Thomas G. Thompson, a derivatives expert and contributing editor for John Lothian News. “Since then they have spent the shareholders’ wealth on a raft of subs that have disappointed.”

Hovering around 22%, according to data collected by The Wall Street Journal, NYSE’s share of the total U.S. equities market following the acquisition has not benefited noticeably as a result of new ownership.

Still, as far as ICE’s overall stock price is concerned, shareholders don’t have a lot to cry about. It is up a whopping 1,200% since the company went public in 2005.

As for Bakkt, the backing of ICE is one of its main selling points, according to market makers who spoke under the condition of anonymity. But what exactly is Bakkt?

Its early marketing push really buried the lede on this, in my opinion. Putting aside the credit card ambitions and Starbucks partnership, what Bakkt brings to the table — and what it is now positioning itself strongly as — is its status as a qualified, institutional custodian business with the backing of a $51 billion publicly traded company. To start, the custody business will store the bitcoin that underpin its contracts, but it’s safe to assume they will soon open their doors to hedge funds, asset managers, and other clients.

“Wait, so it’s not a crypto exchange?,” you might be asking yourself. No, not really. At least, not yet.

Don’t let the futures distract you. Custody is at the heart of Bakkt, several sources tell me. So to a degree it is competing with ErisX, Seed CX, and the litany of other derivatives platforms, on the futures side. But its real competitors are BitGo, Coinbase Custody, and Fidelity. The value proposition of using Bakkt as a custodian are clear. It’s a truly institutional-grade offering with the blessing of the CFTC and New York State. (No offense, South Dakota registrants).

“With state-of-the-art physical and cyber security, institutional grade technology and governance, and backed by insurance for digital assets held in frozen wallets, Bakkt is delivering a new standard in digital asset custody by leveraging the cybersecurity tools on which the NYSE relies,” Bakkt’s revamped website reads.

Coinbase and BitGo have their own strengths, to be sure. Namely, their respective sizable user bases.

Coinbase’s acquisition of Xapo could bring the total amount of bitcoin under its control to approximately 4% of the total supply or 860,000 bitcoin. Currently, 2.5% of all bitcoin are under its custody. Grayscale, one of the largest cryptocurrency asset managers, has approximately $3 billion in assets managed by Coinbase.

BitGo reportedly has $2 billion in assets under its custody. Meanwhile, newbie Fidelity’s custody business offers a complementary broker business to help clients route orders to exchanges when they want to make a trade. Custody is only a part of what these firms strive to do. Fees, which last summer hovered around 100 basis points, are now fast approaching zero. Coinbase already operates an exchange business, in addition to custody. BitGo is looking to launch a prime broker business, several sources tell The Block.

As for Bakkt, the futures contract is likely part of a broader effort to enable regulated price discovery. It’s something chief operating officer Adam White hinted at during FIA Boca.

“What Bakkt fundamentally believes is that price discovery is going to happen in an end-to-end regulated market,” he said. “Most of that price discovery is happening in the spot market, but it is going to switch to the futures markets.”

As that shift could help remedy the concerns of regulators who have declined exchange-traded funds on the concerns that they would rely on prices from unregulated spot markets.

And Bakkt could play a role in the launch of new instruments, which would be tied to their “end-to-end” regulated market.

With the green light to operate as a trust in the state of New York, Bakkt has more free reign than other firms in the market to launch new business lines. As Arthur Long, a lawyer with Gibson Dunn told The Block in May, a trust is “more expansive” and allows firms to operate in a broader swath of services in finance.

So maybe an ETF. Perhaps, an asset manager. Maybe even that long-awaited 401(k) on-ramp.

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TRADING UP: Citi Grabs JPM’s Engler for APAC

Engler has more than 20 years’ experience working in financial markets, … Millward was the head of FX product strategy at Cboe Global Markets for …

Citi has appointed the head of trading for the Americas at JP Morgan Asset Management as its head of execution services in Asia Pacific, according to a company statement. Citi said that Curt Engler will relocate to Hong Kong to oversee the institution’s regional cash equities execution business, spanning 12 markets across the Asia Pacific region, including the high touch, program and electronic trading desks. Engler has more than 20 years’ experience working in financial markets, most recently as head of equity trading for Americas in New York at JP Morgan Asset Management, after first joining the buy-side house in 2010.

Curt Engler, Citi

If you have a new job or promotion to report, let me know at jdantona@marketsmedia.com

NeoXam, a provider of data management and transaction software solutions, hired Philipp Sfeir to head up its DACH business. He will be charged with helping to support ongoing projects, servicing customers, as well as securing new clients and developing the business. Previously, Sfeir was Head of Data Management for Zürcher Kantonalbank, one of the top four banks in Switzerland, and has been presiding over the Swiss Information Providers User Group (SIPUG) for the last three years.

Xceptor, a global data ingestion and transformation software provider, has announced the appointment of Tom Edwards as Chief Operating Officer. Edwards, with over 30 years’ experience, most recently was Head of Delivery at wealth management and capital markets technology provider GBST. He also held posts at Aquila Heywood, Watson Wyatt (now Willis Towers Watson) and PA Consulting Group.

One of the co-heads of Morgan Stanley’s European electronic trading arm has left, following a number of cuts within its London equities business earlier this year. Rupert Fennelly has left the bank, according to people familiar with the matter. He had been co-head of Morgan Stanley Electronic Trading (MSET) alongside Kevin Twitchen since 2014. MSET spans cash equities, options and futures, and offers services including algorithmic trading. Fennelly, a former director at Credit Suisse, was previously head of US sales for Morgan Stanley’s electronic trading business. He was not immediately available for comment.

Paul Millward, 24 Exchange

Paul Millward has joined FastMatch founder Dmitri Galinov’s new venue, 24 Exchange, a Bermuda-based FX derivatives exchange. Millward was the head of FX product strategy at Cboe Global Markets for almost two years. Prior to that he was head of FX product strategy at Bats Global Markets for more than a year. Millward’s began his FX career at Fenics in 2003.

KeyBanc Capital Markets Inc. promoted Tahira Afzal to Deputy Director of Equity Research. Afzal’s promotion follows the announcement by Steve Lidberg, KBCM’s Co-Director of Research, of his departure to pursue other interests. Afzal, a 12-year veteran with KBCM, is based in the firm’s midtown New York office. She joined KBCM in 2007 as a coverage analyst, focused on construction, engineering and infrastructure companies. Prior to this appointment, Afzal served as the Associate Director of Research in addition to her role as a coverage analyst. She helped oversee recruiting, development and management of more than 45 associates based in Cleveland, New York and Bangalore. She will report directly to KBCM’s Director of Research, Nancy Benacci.

The European Securities and Markets Authority (ESMA), the EU’s securities markets’ regulator, has reappointed three current members of its Management Board for a further 2½ year term that will begin on 1 October 2019. The members current terms will expire on 30 September 2019.

The appointments took place at the Board of Supervisors meeting in Paris on 11 July and are:

  • Robert Ophèle, Autorité des Marchés Financiers (AMF), France;
  • Sebastian Albella-Amigo, Comisión Nacional del Mercado de Valores (CNMV), Spain; and
  • Erik Thedéen, Finansinspektionen (FI), Sweden.

The Management Board, chaired by Steven Maijoor, Chair of ESMA, is responsible for ensuring that the Authority carries out its mission and performs the tasks assigned to it under its founding Regulation. The Management Board now consists of:

  • Steven Maijoor, European Securities and Markets Authority (ESMA);
  • Elisabeth Roegele, Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), Germany;
  • Sebastian Albella-Amigo, Comisión Nacional del Mercado de Valores (CNMV), Spain;
  • Robert Ophèle, Autorité des Marchés Financiers (AMF), France;
  • Gabriela Figueiredo Dias, Comissão do mercado de valores mobiliários (CMVM), Portugal; and
  • Erik Thedéen, Finansinspektionen (FI), Sweden.

The Board of Supervisors also decided to extend the mandate of several standing committee chairs, which were coming to an end in in September 2019, until January 2020. This was done in the context ESMA’s forthcoming work on the implementation of the changes associated with EMIR 2.2 and the ESAs Review which will involve reviewing the Standing Committee

The standing committees and chairs concerned are:

  • Committee for Economics and Markets Analysis – Carmine Di Noia, (CONSOB, Italy);
  • Corporate Finance Standing Committee – Benoît de Juvigny (AMF, France);
  • Corporate Reporting Standing Committee – Ana Martinez Pina (CNMV, Spain);
  • Market Integrity Standing Committee – Nicoletta Giusto (CONSOB, Italy);
  • Financial Innovation Standing Committee – Jean-Paul Servais (FSMA, Belgium);
  • Investor Protection and Intermediaries Standing Committee – Evert van Walsum (ESMA) interim until new chair appointed;
  • Post-Trading Standing Committee – Robert Ophele (AMF, France);
  • Secondary Markets Standing Committee – Elisabeth Roegele (BaFIN, Germany); and
  • Commodity Derivatives Task Force – Elisabeth Roegele (BaFIN, Germany).

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Mesabi Trust (MSB) and Cboe Global Markets Inc. (:) Comparison side by side

Since Mesabi Trust (NYSE:MSB) and Cboe Global Markets Inc. (:) are part of the Diversified Investments industry, they are influenced by contrast.

Since Mesabi Trust (NYSE:MSB) and Cboe Global Markets Inc. (:) are part of the Diversified Investments industry, they are influenced by contrast. The influences particularly affect the risk, institutional ownership, analyst recommendations, profitability, dividends, earnings and valuation of both companies.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mesabi Trust 29 8.30 N/A 3.47 8.51
Cboe Global Markets Inc. N/A 0.00 N/A 0.00 0.00

In table 1 we can see Mesabi Trust and Cboe Global Markets Inc.’s top-line revenue, earnings per share (EPS) and valuation.

Profitability

Table 2 hightlights the return on equity, return on assets and net margins of the two companies.

Net Margins Return on Equity Return on Assets
Mesabi Trust 0.00% 219.3% 147.7%
Cboe Global Markets Inc. 0.00% 0% 0%

Insider and Institutional Ownership

Mesabi Trust and Cboe Global Markets Inc. has shares owned by institutional investors as follows: 16% and 0%. Mesabi Trust’s share owned by insiders are 0.26%.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Mesabi Trust -1.04% -6.63% 1.97% 10.79% 24.73% 24.78%
Cboe Global Markets Inc. 1.22% 6.34% 9.35% -4.61% -3.91% 6.18%

For the past year Mesabi Trust’s stock price has bigger growth than Cboe Global Markets Inc.

Summary

Mesabi Trust beats on 8 of the 8 factors Cboe Global Markets Inc.

Mesabi Trust, a royalty trust, engages in iron ore mining business in the United States. The company was founded in 1919 and is based in New York, New York.

CBOE Holdings, Inc., through its subsidiaries, operates as an options exchange in the United States. It offers marketplaces for trading options on various market indexes; futures on the VIX Index; options on the stocks of individual corporations comprising equity options; and options on other exchange-traded products that include ETP options, such as exchange-traded funds and exchange-traded notes, as well as other index options. The company owns and operates CBOE primary options market, which offers trading in listed options through a single system that integrates electronic trading and traditional open outcry trading on its trading floor in Chicago; CFE, an all-electronic futures exchange, which provides futures on the VIX Index, as well as on other products; and C2, an all-electronic exchange that offers trading for listed options. Its exchanges operate on its proprietary technology platform, known as CBOE Command. The company has a strategic relationship with S&P OPCO LLC; FTSE Russell; MSCI Inc.; and S&P Dow Jones Indices, LLC. CBOE Holdings, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.

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