Lausanne, Switzerland, June 28, 2022
Compass Financial Technologies, a Swiss and French based EU regulated index provider and Marex Solutions, Marex’s hedging and investment solutions arm that specialises in customised derivative products, collaborate to offer digital asset investment solutions for institutional investors. Marex will leverage the expertise of Compass which designs BMR compliant crypto indices to provide institutional clients with first class investment solutions.
Compass has been a market leader in providing crypto index engineering since 2018 by first launching EU benchmark regulated reference rate indices for ETP issuers. Since then, Compass has steadily expanded its scope towards more sophisticated and bespoke indices to meet the demand of institutional clients.
Compass crypto indices range from single BMR reference prices to thematic indices such as DeFi indices and more sophisticated strategies using options.
Active in the financial index industry since more than 20 years, Compass team applies its expertise on digital assets since more than 4 years. The Compass team similarly produced sophisticated institutional commodity products in the 2000s and is now seeing a similar demand play out for crypto indices.
Marex, an expert issuer and market maker in structured products, is able to provide a variety of payoffs referencing crypto underlyings. With an offering ranging from delta 1 access products to tailor-made structures, Marex delivers payoffs in both securitised and OTC format to investors ranging from Private Banks, Wealth Managers and Family Offices to Institutional Investors and ETP providers.
As a pioneer in the issuance of crypto underlying products, Marex was the first issuer to issue Autocallable Barrier notes linked to Bitcoin and Ethereum, as well as the only issuer to manufacture Cash and Carry certificates on both cryptocurrencies. With a focus on service, technology and innovation, further projects in this space are expected to launch soon.
This collaboration combines Compass leading expertise on digital assets index solutions and Marex expertise in designing and managing complex strategies for institutional clients.
Guillaume Le Fur, Compass CEO commented, “We are very proud to partner with Marex which is a pioneer in issuing structured products linked to digital assets. This is another important step in the widespread adoption of our indices as benchmarks on this new asset class.”
Joost Burgerhout, Head of Marex Financial Products added, “OTC products which have a crypto underlying are an integral part of our product offering and we’re seeing increasing demand from all markets. We thrive to provide the best possible payoff and service to our clients and Compass’ expertise as a market leader in the calculation of crypto indices is a logical leader to work with”.
About Compass Financial Technologies
Compass is one of the leading digital asset index providers. Its benchmark indices have over $4bn and are tracked by multiple financial products worldwide. Compass is registered as an index administrator under the EU Benchmarks Regulation (EU BMR).
Marex Group plc is a global financial services platform, providing essential liquidity, market access and infrastructure services to clients in the energy, commodities and financial markets.
The Group provides comprehensive breadth and depth of coverage across five core services: Market Making, Execution and Clearing, Hedging and Investment Solutions, Price Discovery and Data & Advisory. It has a leading franchise in many major metals, energy and agricultural products, executing around 38 million trades and clearing over 193 million contracts in 2021.
The Group provides access to the world’s major commodity markets, covering a broad range of clients that include some of the largest commodity producers, consumers and traders, banks, hedge funds and asset managers. Marex Financial, is the primary operating company of Marex Group plc. Marex Financial has an Investment Grade BBB rating (S&P June 2022) and a CET1 Ratio of 17.48% (December 2021).
Marex Financial Products is part of the Hedging and Investment Solutions division of Marex Group plc (Marex Solutions). The Marex Financial Products team creates tailor-made cross asset investment solutions on virtually any underlying. Since its launch in 2019, the Marex Financial Products team has issued more than 5,000 products and traded over $4bn notional in notes.
Marex was established in 2005 but through its subsidiaries can trace its roots in the commodity markets back almost 100 years. Headquartered in London with 22 offices worldwide, the Group has over 1,100 employees across Europe, Asia and America.