Jump Trading and DRW are committing trading staff and their own capital to the emerging market for AI compute derivatives, according to Bloomberg, as major trading venues and infrastructure firms prepare contracts tied to computing power. Jump has already formed a dedicated trading team and plans to use its balance sheet to take on trading risk while making markets in proposed compute futures from CME Group and Silicon Data, as well as in a competing contract being developed through a partnership between Intercontinental Exchange and Ornn. DRW is taking a multi-team approach, with three groups using different strategies to participate in compute trading. The firm plans to trade Silicon Data’s products, though it has not yet decided whether it will join other compute contracts. Analysts cited by Bloomberg said the segment still faces basic hurdles, including limited price transparency, wide differences in GPU pricing across regions and hardware configurations, and the fact that compute capacity cannot be stored.
Jump Trading and DRW are putting trading teams and proprietary capital into the emerging market for AI compute derivatives, according to Bloomberg.
Jump Trading has set up a dedicated trading team and plans to use its own balance sheet to absorb trading risk. The firm is preparing to make markets in proposed compute futures from CME Group and Silicon Data, as well as in a competing contract being launched through a partnership between Intercontinental Exchange (ICE) and Ornn.
DRW, for its part, plans to join compute trading through three teams that use different strategies. It has already decided to trade Silicon Data-related products, but has not determined whether it will participate in other compute contracts.
Analysts cited by Bloomberg said the compute derivatives market still faces several obstacles, including limited price transparency, large differences in GPU prices across regions and configurations, and the fact that compute capacity cannot be stored.
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