Understanding Trade at Settlement (TAS)

In the ever-evolving world of cryptocurrencies, new instruments are essential for managing risks effectively. Tassat, in partnership with Blockfills, is set to unveil an institutional Trade at Settlement (TAS) product for spot Bitcoin (XBT/USD). But what does this all mean? Well, TAS is a sophisticated electronic order book that allows traders to buy and sell at a price determined during a pre-set fixing period, thus maximizing precision in execution.

The Advantages of TAS

The TAS model has long been a staple in more traditional derivatives markets, reducing the common uncertainties associated with price volatility. It avoids the “slippage” phenomenon that many traders find disheartening during price swings. Tassat argues that while retail exchanges face unpredictable factors, TAS provides a much-needed buffer for traders, ensuring they aren’t dealing with abrupt price movements and unnecessarily broader spreads.

• Reduces execution slippage
• Establishes a trading price around a set period
• Mitigates risks associated with sudden market changes

Behind the Scenes: How It Works

Tassat will leverage its Bitcoin reference rates, which are developed using aggregated institutional-size quotes from more than ten global over-the-counter market makers. These rates will serve as the foundation for the settlement price during each trading window. Blockfills will harness its sophisticated trading platform to manage everything from order flow to the final push of trades.

Why This is Good News for Traders

As Josh Gibson, Tassat’s Director of Sales, aptly put it, “TAS provides a way to offset risks on futures positions or rebalance options with minimal risk of slippage.” This solution is timely as the interest in digital asset derivatives continues to grow—offering traders fresh and efficient avenues for hedging their investments.

Regulatory Developments: Tassat’s Journey

As reported earlier by Cointelegraph, Tassat is on the brink of its goal to launch a fully-regulated cryptocurrency derivatives exchange. The U.S. Commodity Futures Trading Commission (CFTC) has approved the transfer of registration rights, which is a crucial step toward allowing Tassat to operate under CFTC oversight. With its past collaborations with market data firms like Kaiko, Tassat is positioning itself as a leader in providing critical data services in the expanding landscape of cryptocurrency trading.