On November 18, according to a report by Hedgeweek, Blockfills, which specializes in digital asset electronic market making, trading, and prime brokerage will join forces with Tassat, which was formerly known as ‘trueDigital’ to launch the product by mid-December.
We're excited to partner with @Blockfills to introduce the #Bitcoin "Trade-At-Settlement" product, which will enable institutions to trade at prices derived from Tassat’s reference rates. #indices https://t.co/HnCmETS7e5 — Tassat Group LLC (@tassatgroup) November 13, 2019
However, TAS is a specific type of electronic order book that enables buyers and sellers to trade at, or close to a settlement price established during a discrete fixing period.
Widely used in derivatives markets for a range of underlying assets, the model is designed to reduce uncertainty and to eradicate slippage in execution by establishing a determined price for participants to trade around.
Likewise, TAS developers argue that by contrast, retail spot exchanges are beset with risks and uncertainty associated with price volatility, abrupt price movements, and significantly wider spreads.
For the Bitcoin (XBT/USD) TAS product, Tassat’s Bitcoin (BTC) reference rates, constructed from aggregated institutional-size quotes from over ten global over-the-counter digital asset market makers, will underpin the settlement price at each window.
However, Blockfills’ trading platform infrastructure will be used to manage order flow, matching, execution and settlement of trades.
Josh Gibson, Director of Sales of Tassat, stated:
“TAS provides a way to offset the risk of price movements on their futures positions and/or rebalance the gamma on options 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.” Josh Gibson
As it has been reported, Tassat recently succeeded in overcoming the first hurdle in its bid to launch its own fully-regulated crypto derivatives exchange.
Thus, the United States Commodity Futures Trading Commission (CFTC) approved the transfer of existing registration rights from affiliated financial services firms that pave the way to allowing Tassat to operate an exchange listing futures or options contracts with the agency’s oversight.