Pioneering the Future of Crypto Derivatives: EDXM Global's Perpetual Futures Venue Launches in Tokyo

EDXM Global, a leading digital asset technology company, has announced the upcoming launch of its highly anticipated perpetual futures venue. This new platform, set to go live in Q1 2025, promises to revolutionize the way institutions and investors engage with the rapidly evolving crypto derivatives market. With a focus on security, efficiency, and risk mitigation, EDXM Global's offering aims to provide a trusted and liquid trading environment for Bitcoin, Ether, and other major cryptocurrencies.

Unlocking Institutional Adoption of Crypto Derivatives

Secure and Efficient Crypto Futures Trading

EDXM Global's perpetual futures venue will be located in the heart of Tokyo, co-located at the Equinix TY3 data center. This strategic placement, combined with a robust central clearinghouse and a single net settlement process, will enable secure and efficient trading for clients. By reducing the upfront capital required and minimizing credit risk, EDXM Global's platform aims to lower the barriers to entry for institutions seeking to participate in the crypto derivatives market.The venue's unique bankruptcy-remote structure is a game-changer, allowing members to retain ownership of their currency deposits. This feature provides an added layer of protection, instilling confidence in the platform's ability to safeguard client assets.

Expanding the Crypto Derivatives Landscape

EDXM Global's perpetual futures venue will initially support trading in Bitcoin and Ether, two of the most prominent cryptocurrencies. However, the platform's roadmap includes the addition of other major digital assets, such as Solana and XRP, in the months following the launch. This diversification will cater to the growing demand for exposure to a wider range of crypto-based derivatives.By offering a familiar and secure trading environment, EDXM Global aims to address the concerns that have historically deterred some institutions from entering the crypto derivatives space. With the platform's user-friendly GUI and API access, these firms can now seamlessly integrate digital asset strategies into their investment portfolios.

Experienced Leadership Driving Innovation

EDXM Global's new perpetual futures venue will be led by a seasoned team of industry veterans. Kai Kono, the newly appointed CEO, brings a wealth of experience from his previous roles at institutional digital asset firms, including Zodia Custody. Kono's deep understanding of the crypto landscape, combined with his extensive background in traditional finance, positions him as the ideal leader to guide EDXM Global's growth in the Asia-Pacific region.Joining Kono is Rakesh Madamanchi, the Chief Compliance Officer. Madamanchi's impressive resume includes over 15 years of legal and compliance experience at global banks, such as Wells Fargo, ANZ, and Standard Chartered Bank. His expertise in navigating complex regulatory environments will be crucial in ensuring EDXM Global's perpetual futures venue operates within the highest standards of compliance.

Accelerating the Adoption of Digital Asset Strategies

Jamil Nazarali, the CEO of EDX, the parent company of EDXM Global, expressed his excitement about the launch of the new perpetual futures venue. "EDXM Global's platform will provide clients with a safer, more streamlined experience that reduces costs and improves both capital and operational efficiency. We're thrilled to launch this new business and have complete confidence in its success under Kai's leadership."Kai Kono echoed this sentiment, stating, "I am thrilled to lead EDXM Global's growth in APAC and to help accelerate the adoption of digital asset strategies for institutions in the region. Many of these firms have long had the desire to enter this space, but have been reluctant to do so given the perceived risks. Now that EDXM Global can deliver crypto derivatives trading within a familiar, secure trading environment, I anticipate strong interest from a wide range of participants."EDXM Global's perpetual futures venue represents a significant milestone in the evolution of the crypto derivatives market. By addressing the key concerns of institutional investors and providing a trusted, efficient, and secure trading platform, the company is poised to drive the widespread adoption of digital asset strategies across the Asia-Pacific region and beyond.

Cattle Futures Fluctuate as Traders Await Direct Market Activity

The cattle futures market at the Chicago Mercantile Exchange experienced mixed trading as participants waited for the week's direct business to unfold and the release of the USDA's Cattle on Feed report on Friday. While live and feeder cattle prices saw some movement, the overall market remained relatively quiet, with bids and asking prices still taking shape.

Navigating the Shifting Cattle Landscape

Cattle Futures Reflect Cautious Sentiment

The October live cattle contract closed $0.50 lower at $178.30, while the December live cattle contract remained unchanged at $179.85. In the feeder cattle market, the October contract closed $0.80 lower at $239.95, and the November contract closed $0.17 lower at $238.12. This mixed performance suggests a cautious sentiment among traders, as they await further developments in the direct cash cattle trade.

Direct Cash Cattle Trade Remains Quiet

Direct cash cattle trade activity was once again subdued on Wednesday, with bids proving elusive throughout the week. Asking prices of $184 to $185 per live cwt were reported in the South, but no firm trade was established in the North. Market participants appear to be holding out for significant trade volume, potentially waiting until later in the week after the release of the USDA's Cattle on Feed report on Friday.

Regional Feeder Cattle Market Trends

At the Interstate Regional Stockyards in Missouri, feeder steers and heifers were steady to $3 higher, while slaughter cows were $4 to $6 lower. The USDA noted that demand was good despite the light supply. Receipts were down compared to the previous week and the same period last year. The feeder cattle offering consisted of 58% steers, with 39% of the animals weighing over 600 pounds. Medium and Large 1 feeder steers weighing 609 to 646 pounds sold for $265 to $271, while those weighing 733 to 745 pounds brought $245 to $253.75. Medium and Large 1 feeder heifers weighing 700 to 740 pounds sold for $220 to $237.50.

Boxed Beef Prices Decline Sharply

Boxed beef prices closed sharply lower, with Choice beef down $2.53 to $301.38 and Select beef down $2.47 to $289.75. The Choice-Select spread narrowed to $11.63. The decline in boxed beef prices was attributed to light demand for the heavy offerings. Estimated cattle slaughter for the week was 125,000 head, down 1,000 from the previous week and more than 2,500 lower than the same period last year.

Hog Futures and Cash Prices Mixed

In the hog market, lean hog futures ended the day mostly higher, with the October contract closing $0.27 higher at $82.05 and the December contract closing $0.17 higher at $73.87. This was driven by spread trading and stronger pork values during the session.Cash hog prices, however, closed lower with a light negotiated run. After a couple of solid days of business, processors appear to have scaled back their procurement efforts, leading to lower prices and weaker runs. While demand for U.S. pork in the global market has provided some strength, lingering concerns about domestic demand have been troubling the market. Hog weights have dropped by half a pound on the week but remain more than 4.5 pounds above year-ago levels. Barrows and gilts at the National Daily Direct closed $2.45 lower, with a base range of $73 to $79 and a weighted average of $74.88.

Pork Values Decline, Hog Slaughter Drops

Pork values closed weak, down $0.59 to $94.41. Bellies and picnics were sharply lower, while butts and hams were also lower. Ribs and loins, however, were firm to higher. Estimated hog slaughter for the week was 479,000 head, down 4,000 from the previous week and about 8,500 lower than the same period last year.

Cattle and Hog Futures Poised for Potential Upside

Traders are showing renewed optimism in the cattle and hog futures markets, with the potential for further upside price movement. The anticipation of steady cash trade and improved boxed beef and pork cutout prices have provided support to the markets, leading to increased buying interest from technical traders. However, the upcoming Cattle on Feed report and the continued strength in hog supplies may temper the exuberance, as uncertainties remain. This article explores the key factors driving the current market dynamics and the potential implications for producers and industry stakeholders.

Unlocking the Upside Potential in Cattle and Hog Futures

Cattle Futures: Reducing the Discount to Cash

Traders have been actively buying cattle futures in an effort to reduce the discount the market is holding to cash prices. The anticipation is for steady cash trade this week, which could provide further support to the futures market. Feedlots may hold tight to higher asking prices as long as there is support in the futures market, as the packers did not purchase many cattle for deferred delivery last week. However, the upcoming Cattle on Feed report may temper the exuberance of traders due to the uncertainty surrounding placements. Additionally, the continued struggle in boxed beef prices may limit the upside price potential for cattle futures and cash cattle.

Hog Futures: Technical Traders Eyeing the Uptrend

The February and later hog contracts have moved and closed above the previous highs, which may trigger further buying interest from technical traders. This could signal a potential resumption of the uptrend in the hog futures market. The October and December hog contracts, however, may have difficulty pushing above the previous highs without further strength from the underlying cash market.The improved cash and cutout prices so far this week have provided renewed support for the hog market. Packers may need to be more aggressive buyers today to secure sufficient supplies, as hog weights continue to run higher than a year ago. However, the plentiful hog supplies may limit the extent of the upside, as packers have been able to obtain sufficient supplies without having to chase the market higher.

Navigating the Uncertainties: Cattle on Feed and Hog Supplies

The upcoming Cattle on Feed report will be closely watched by market participants, as the data on placements may temper the exuberance of traders. The uncertainty surrounding the report's findings could introduce some volatility into the cattle futures market.Similarly, the continued strength in hog supplies, with weights running higher than a year ago, may pose a challenge for the hog futures market. While the packers have been able to secure sufficient supplies without having to pay significantly higher prices, the abundance of hogs may limit the upside potential in the near term.

Staying Informed and Adaptable

As the livestock futures markets navigate these shifting dynamics, it is crucial for producers, industry stakeholders, and investors to stay informed and adaptable. Closely monitoring the latest market updates, including the Midday Livestock comments and Quick Takes, can provide valuable insights to help navigate the evolving landscape.By understanding the key factors driving the cattle and hog futures markets, market participants can make more informed decisions and position themselves to capitalize on the potential upside opportunities, while also being mindful of the lingering uncertainties that may temper the market's enthusiasm.