Singapore-based Sparrow has launched its platform to make options trading simple, secure and accessible for institutions and individuals, reports Jane Connolly.

Designed to make options trading available to everyone, Sparrow’s option products, TradeBOOST and TradePROTECT, can be set up in just three steps.

Sparrow features high performance trading tools and hedging solutions for professional and institutional traders through a global liquidity book, trading APIs and a full options order book.

The ConvertNOW facility allows users to trade customised European options with no counterparty risk. It instantly converts over 25 trading pairs at zero cost, and obtains Sparrow’s settlement currency, the Sparrow dollar (SP$).

Using a hybrid off-chain on-chain approach, Sparrow offers transparent, automated settlement on Ethereum smart contracts deployed onto the Nidus proof of authority chain.

Transaction fees of 0.1% of the contract notional value are payable in Bitcoin, Ethereum or Sparrow Tokens, with a 50% discount available to those paying with the latter.

“We understand the challenges all traders face while trading digital assets. Options used to be an instrument only professionals could use. With the launch of Sparrow, everyone can use options,” says Kenneth Yeo, Sparrow’s CEO.

He adds: “Sparrow has managed to transform a traditionally complex and illiquid trading instrument, bringing options trading to the mass market. Sparrow options are more liquid than over-the-counter (OTC) options and more customisable than standardised contracts, enabling traders to enjoy the best of both worlds.”

Sparrow has partnered with BitGo to ensure asset security.