Blockchain Platform Eliminates Brokers In Derivatives Trading

The new platform for blockchain-based derivatives disrupts the derivatives trading market by eliminating the need for brokers and brokerage platforms to create a peer-to-peer (P2P) trading platform.

Launched in collaboration with Thomson Reuters, Level 01 Technologies recently launched the Level 01 derivatives exchange in Hong Kong, which it said offers a transparent and impartial environment for trading derivative contracts.

As part of the deal, Level 01 Technologies will use Thomson Reuters data channels as the primary source for deep learning artificial intelligence (AI) algorithms so that the platform can provide real-time price analysis on derivative contracts. These data can also be used to ensure reasonable, transparent and accurate settlement of derivative contracts once they have been concluded.

Jonathan Loy, CEO of Level 01, explained that his platform is equipped with a smart contract system that also serves as a pre-established, impartial and reliable intermediary for transactions and trade settlements. The system is able to circumvent the need for brokerage platforms that expose market participants to the risk of collusion, negligence and in some cases of fraud.