Rulematch Leverages Nasdaq Tech for Institutional Trading

Rulematch, a recently established cryptocurrency exchange for banks based in Switzerland, operates on Nasdaq’s technology.

Seven major banks and securities firms, including Banco Bilbao Vizcaya Argentaria (BBVA), a pioneer in digital assets in Spain, have already joined the exchange.

Rulematch, an event that will provide spot trading in bitcoin (BTC) and ether (ETH) against the dollar for a limited group of institutional clients, employs pre-trade risk checks, trade matching, and market surveillance capabilities from Nasdaq in addition to crypto custody technology from bank-friendly Metaco in Switzerland.

Following significant occurrences such as the collapse of FTX last year, institutional interest in cryptocurrency trading is being addressed directly through sophisticated strategies that closely resemble conventional finance.

These approaches prioritize segregated functionality and strict adherence to market regulations.

According to a press release, Rulematch endeavors to offer firms the institutional experience they are acclimated to by providing an anonymous central-limit-order book with execution times of 30 microseconds and integrated post-trade settlement with multilateral clearing.

Deterministic market makers, such as Flow Traders and Germany’s Bankhaus Scheich Wertpapierspezialist, ensure the provision of upfront liquidity.

“The cryptocurrency spot market is dominated by participants who fail to meet the stringent requirements of a regulated participant,” said David Riegelnig, the chief executive officer, in an interview.

“The combination of functions that so-called cryptocurrency exchanges typically perform, which makes them more of a broker than an exchange, was the primary impetus for us to launch Rulesmatch.”

Rulematch has the support of Flow Traders of the Netherlands, Consensys Mesh, and FiveT Fintech, previously referred to as Avaloq. German DLT Finance is an additional platform user in addition to BBVA.

Riegelnig stated that most other participating institutions did not wish to be identified at this time.

“There are numerous additional institutions in the works.” “However, the recruiting process is laborious,” Riegelnig explained.

“Both parties conduct extensive due diligence, and we only select jurisdictions that meet the requirements of the OECD and FATF, including the European Union, the United Kingdom, and Singapore.”