A crypto derivatives exchange has received a clean bill of health from the same software tester that vets the trading and settlement systems used by the London Stock Exchange (LSE).
ZUBR, which only opened for trading in early March, said its trading software had been successfully stress-tested by Exactpro. The exchange's high-frequency trading feature, risk management protocols and trading engine met requirements set by the software tester.
"The testing included a few milestones, such as the analysis of documentation and requirements, the development of testing scenarios, multiple rounds of testing, risk assessment and recommendations," said Alexey Zverev, Exactpro co-founder and director, in a statement.
ZUBR is a crypto derivatives exchange aimed at professional traders using algorithmic and high-frequency trading strategies. The platform offers perpetual contracts – futures with no expiry dates – for bitcoin (BTC) and ether (ETH) with up to 20 times leverage. Based in Gibraltar, the company is looking to become regulated in Europe, although a spokesperson declined to specify where.
Established in 2009, Exactpro has tested the LSE's trading technology since 2010. It was acquired by the exchange group in 2015, but was subject to a management buyout three years later for undisclosed terms. "LSEG remains a substantial client of Exactpro and we continue to provide services following a multi-year master services agreement," a spokesperson told CoinDesk.
Speaking about the tests it performed for ZUBR, Exactpro concluded the exchange "met the requirements of a high-frequency trading venue," with trade executing in microseconds even in high-demand simulations. Its risk management protocols meant the exchange could, subject to regulation, offer higher leverage options.
Exactpro recently expressed some skepticism about whether blockchain and distributed ledger technology (DLT) could replace existing financial infrastructure. Co-founder and co-CEO Iosif Itkin told CoinDesk that the technology was still very much at the prototype stage.
ZUBR was the first cryptocurrency exchange assessed by Exactpro. The company said it would "continue to collaborate with [ZUBR] to ensure any new technical features are fully tested."
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.