Fortex Launches Crypto Non-Deliverable Forwards

By Brian Njuguna   Nov 01, 2019 1 Min Read



Fortex Technologies, a globally recognized multi-asset trading provider, has announced the expansion of its crypto services to include crypto non-deliverable forwards (NDFs), as well as an institutional platform for cryptocurrencies and digital assets.

NDFs are forward contracts that are settled through cash and are often presented on a short-term basis as the name suggests. Notably, the notional amount is certainly not paid. Fortex views NDFs as an ideal solution to institutional clients seeking access to enhanced liquidity, as well as substantial trade allocations in an ECN environment. 

Expressly, ECN or Electronic Communication Network can be viewed as a bridge that links smaller market participants with the liquidity providers via a Forex ECN broker. 

Jason Young, the head of Institutional Foreign Exchange (FX) at Fortex stipulated:

“The major benefits in the design of Fortex’s software and system architecture are that it: 1) is completely flexible, modular, and scalable, 2) is multi-asset, and 3) has been continually improved upon for over 20 years. While there are differences between fiat and cryptocurrencies, our technology and market experience have made the integration of cryptocurrencies and digital assets to our platform a smooth one.”

On the other hand, the institutional platform to offer cryptocurrencies and digital assets will provide end-to-end solutions. Some of the speculated benefits include enhanced liquidity aggregation, risk management, price discovery, and reduced transaction costs. 

 

Image via Shutterstock

About the author

Brian Njuguna   
Brian is an accomplished corporate writer and entrepreneur based in Nairobi, Kenya. He holds a Bachelors of Economics & Statistics, Second Class Upper Division, from Kenyatta University. Brian has a penchant for Blockchain and Cryptocurrency because he believes the present systems will be altered by these innovations as they reign supreme as we gear towards the fourth industrial revolution or 4IR.




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