Crypto market maker Wintermute has obtained broker-dealer status in the United States, marking a significant development for its operations within the American financial landscape.
New York-based Wintermute USA LLC, a new unit of Wintermute, has registered with both the Securities and Exchange Commission (SEC) and FINRA. The registration permits the firm to operate as a proprietary trading firm, subject to regulatory oversight from these bodies. This status unlocks a broader range of activities for the market maker.
Wintermute USA LLC will be able to trade stocks and equity options. Furthermore, it can provide liquidity to exchanges and over-the-counter counterparties. The firm’s expanded capabilities include acting as an authorized participant for exchange-traded funds (ETFs), specifically those linked to cryptocurrency assets.
Authorized participants are responsible for creating and redeeming large blocks of ETF shares. Wintermute has outlined that the new unit is designed solely for proprietary trading, without plans to offer retail brokerage services. Trading activities will encompass roles on exchanges such as the New York Stock Exchange and Nasdaq.
The firm’s attainment of broker-dealer status represents a crucial step in its ambitions within the US market. It positions Wintermute to participate more actively in liquidity provision and potential market-making roles across various asset classes. This development underlines increasing regulatory acceptance for crypto market makers seeking to operate more traditionally within established financial systems.
Written by Oliver Grant
Markets Desk
