One Dutch regulator stated that the crypto derivatives market should be restricted to wholesale trade. The reasons being would be the lack of transparency, market manipulation and other forms of criminal activity.
Paul-Willem van Gerwen the head of Capital Markets and Transparency Supervision at the Dutch Authority for Financial Markets expressed his opinion on the crypto derivatives trade at the Amsterdam Propriety Traders Managers Meeting.
He emphasized, that despite the market’s rising interest in crypto derivatives trading, the AFM considers such trades as entailing risks and thinks the market to be not as established as the other derivatives markets.
A specific problem arising from the volatility of the crypto products leads to a question of whether the parties to the derivative transaction will be in a position to fulfil their promises.
Another topic van Gerwen touched upon in his speech was the distributed ledger’s impact on clearing. At this he sounded much more hopeful, acknowledging the advantages of using the blockchain in clearing operations, but, yet again, was cautious while commenting on the industry’s possible roles.
