Okcoin is the third crypto exchange to become a member of ISDA, paving the way for us to offer bilateral OTC crypto derivatives soon. Learn more about how Okcoin is going to bring institutional-grade standards and processes to crypto products.
- Okcoin is now a member of ISDA, the global derivatives markets association, and we’re one of only three crypto exchanges to join
- ISDA’s Master Agreement offers industry leading contractual standards and processes
- This membership will allow us to offer bilateral OTC crypto derivatives later this year
- This is an additional step in the strengthening of our institutional offerings, with much more to come in 2022
What is ISDA?
The International Swaps and Derivatives Association was created in 1985 with the goal to “make the global derivatives markets safer and more efficient.” Since then, they have led efforts to promote derivatives as a risk management tool, both within the industry and in relations with regulators. They have focused on three specific areas:
- Reducing counterparty risk
- Increasing trade transparency
- Improving operational infrastructures
They do this by developing international, collective standards for the industry. The ISDA now counts close to 1000 members from 78 countries. This includes corporations, investment managers, and regional banks but also exchanges such as Okcoin, clearing houses, law firms, accounting firms, and more.
Leveling up institutional standards
Institutional clients want sophisticated solutions, and for them to be aligned with the best processes and standards in place in traditional finance. Okcoin has the infrastructure and expertise to do it all. Iskandar Vanblarcum, Okcoin Europe General Manager and Head of Sales, commented:
“ISDA’s Master Agreements are used all across the industry for traditional assets’ derivatives. Our clients need a globally recognized template like ISDA’s to benefit from exposure to crypto markets.”
ISDA’s Master Agreement governing over-the-counter derivatives is going to allow us to offer crypto products aligned with these best practices. We plan to offer bilateral over-the-counter derivatives products to eligible institutional clients later this year. Our ISDA membership allows us to offer derivatives in-house to our growing eligible institutional client base which has shown great interest in crypto derivative products.