Wintermute, the cryptocurrency market maker, has registered a broker-dealer subsidiary with the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), according to The Block. The registered entity marks a push beyond digital assets into traditional equities and commodities. The subsidiary can provide liquidity to US securities exchanges and over-the-counter counterparties, and it is allowed to trade stocks and options from its own account. Wintermute also said the company will be able to self-clear digital asset securities trades and serve as an authorized participant for exchange-traded products, including products related to digital assets. In the US framework, a broker-dealer is a company or individual registered with the SEC and FINRA that either executes trades for clients or deals in securities for its own account. As an authorized participant, the firm would help create and redeem large ETF shares by exchanging them for a basket of underlying securities or cash, a process that keeps a fund's market price aligned with its net asset value. The registration puts a crypto-native market maker into a regulated corner of US capital markets infrastructure.
Wintermute has registered a broker-dealer subsidiary with the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), according to The Block. The crypto market maker plans to use the entity to move into traditional stocks and commodities.
The registered unit can provide liquidity on US securities exchanges and to over-the-counter counterparties, and it can trade stocks and options from its own account. Wintermute said the company will also self-clear digital asset securities trades and act as an authorized participant for exchange-traded products, including those tied to digital assets.
Broker-dealer and authorized participant
A broker-dealer is a company or individual registered with the SEC and FINRA. The broker side executes trades on behalf of clients; the dealer side buys and sells securities for the firm's own account.
An authorized participant creates and redeems large baskets of ETF shares by exchanging the shares for the underlying securities portfolio or cash. That process helps keep an ETF's market price close to its net asset value.
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