The startup has developed a futures exchange and clearing house platform that utilizes fully collateralized instruments to mitigate systemic risks in traditional asset trading. By guaranteeing payments and expediting clearing processes, the platform enables traders to minimize losses, enhance leverage, and optimize risk management in global markets.
Funding
$6.3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Current futures exchanges expose traders to potentially unlimited risk and do not guarantee payments on winning positions, while also requiring overnight clearing cycles. These factors can lead to significant losses for traders and systemic risk for the industry.
Solution
Demand Derivatives is developing a regulated futures exchange and clearing house that utilizes fully collateralized instruments to mitigate systemic risks and enhance trading efficiency. The platform's novel contract designs guarantee payments on winning positions and eliminate the potential for losses exceeding posted collateral. By expediting clearing processes and offering unique risk/reward profiles, Demand Derivatives aims to provide traders with superior risk management tools and cost savings compared to traditional exchanges. The exchange intends to offer a range of products, including realized volatility indices and instruments, forward-start daily options, and limited-risk futures contracts.
Target Audience
The primary target audience includes institutional market participants, designated market makers (DMMs), and designated futures commission merchants (DFCMs) seeking enhanced risk management and capital efficiency.
Features
- Fully collateralized instruments that guarantee payments and eliminate losses beyond posted collateral
- Instant clearing to allow traders to quickly redeploy capital
- Potential fee reductions between 50% and 90% compared to traditional exchanges
- RealVol®: A suite of realized volatility indices and instruments
- RealDay™: Forward-start daily options for hedging daily event risks
- RealLimit™: Limited risk futures contracts
- PEAS (Perfect Execution at Settlement) order type guarantees end-of-day fill at the settlement price