A Chicago-based company has unveiled a new derivatives exchange, offering a brand new kind of derivative – Clippers, which allow market participants to cap a gain or loss from an underlying asset.
Actuarial Holdings (AE) unveiled a new cleared exchange for bilaterally traded over-the-counter derivatives called Everest OTC Trade Facility on Tuesday September 30.
“This new instrument is a brand new standard manufactured derivative that is as fundamental and important as options, futures or swaps,” said Adam Burczyk, founder and CEO of Actuarial Holdings. “That’s a pretty big claim. This is a non-decomposable instance of a new derivative. It’s guaranteed to capture the targeted return of the speculator but at the same time cuts out all of the maximum loss that is beyond the interest of the trader.”
The exchange has been in market beta testing since last November. AE has market...