Skytra’s trading venue
Skytra is applying to the UK financial services regulator, the Financial Conduct Authority (FCA), for authorisation as an Investment Firm operating a Multilateral Trading Facility (MTF) under Part 4A of the Financial Services and Markets Act 2000 (as amended) (‘FSMA’).
The purpose of the Skytra MTF is to establish a new trading venue for the buying and selling of derivatives to hedge air travel revenue risk. This will allow for the air travel industry to transfer its volatile revenue risk. Whilst the Skytra MTF will conform to tested industry norms, Skytra brings innovation to both the air travel and financial services industries by way of its unique proprietary air travel price indices.
Skytra’s MTF is being established to provide a highly regulated, transparent and liquid market for its members and their clients to trade futures and options contracts based on Skytra’s underlying proprietary benchmarks.
Skytra MTF’s rules, centrally cleared market model, trading procedures, message structures, connectivity, legal agreements and derivative contract specifications are closely aligned with industry norms to ensure familiarity with market participants.
Skytra is working closely with major data and software vendors to ensure the required environments around its services are there to support its members and their clients.