The Bitfinex cryptocurrency exchange has launched perpetual contracts in USDT that copy two European stock indexes: Europe 50 (STOXX) and Germany 30 (DAX).
Perpetual contracts for Europe 50 (EUROPE50IXF0: USTF0) and Germany 30 (GERMANY30IXF0: USTF0) started functioning on September 28 at 12:00 Moscow time. Each contract offers a leverage of up to 100x and is settled in the USDT stablecoin.
A perpetual contract is similar to a traditional futures contract, but it does not have an expiration date and actually repeats the movement of the spot market. The Europe 50 index (STOXX) tracks 50 stocks from 18 European countries, while the German 30 index (DAX) includes the 30 largest and most liquid German companies listed on the Frankfurt stock exchange.
“For the first time, an exchange from the digital asset industry has launched a product that bridges the gap with traditional stock markets, which represents an important milestone in the evolution of cryptocurrencies as an asset class,” said Paolo Ardoino, technical Director of Bitfinex Derivatives.
According to him, the use of USDT will simplify calculations in strategies for trading between asset classes, hedging and risk management. Perpetual contracts will be open for trading around the clock during the week, unlike stock exchanges, which operate for several hours five days a week.
As such, investors from traditional markets can turn to Bitfinex’s perpetual contracts over an eventful weekend to determine prices before the exchanges open on Monday.
“Over the weekend, we reasonably expect lower volumes than on weekdays, unless there are significant economic events over the weekend, such as changes in Central Bank policies, etc.,” a Bitfinex spokesperson said.
The exchange will strive to ensure price stability by setting a limit of +/- 5% on the final market price from 19:30 to 11:00 Moscow time the next day.
Recall that in early September, Shyft Network, Tether, Bitfinex and Huobi created a
task force to comply with regulatory requirements, and Bitfinex also invested
in the LN Markets derivatives exchange.