OTC Derivatives at Neo-X

Neo-X's OTC derivatives desk has been live since March 2026, operating under AFSL 558430 for wholesale clients only.

What the desk does

The desk prices and trades FX and cryptocurrency derivatives directly, off-exchange and as principal. Each contract is sized and dated to the client's specific requirements: notional, tenor, strike, settlement currency and settlement method are agreed per trade rather than taken from a listed contract. Underlyings are bitcoin, other digital assets in the OTC coverage list, AUD crosses and other foreign exchange pairs.

Structures

Linear. Forwards, swaps and cross-currency swaps. A fixed price in both directions, with mark-to-market valuations over the life of the trade.

Vanilla options. European, American and Asian puts and calls. Premium paid is lost if the option expires out of the money; selling options creates an open-ended obligation.

Structured hedging. Collars, spreads, seagulls and participators. Lower or zero premium in exchange for capped upside or partial protection.

Yield. Covered calls, iron condors, digitals, sharkfins, knock-outs and target redemption forwards. Losses in an adverse scenario can exceed the premium, and are uncapped on some structures.

Bespoke. Combinations of the above, including BTC-collateralised FX structures.

FX: fixing the cost of a US dollar payable

A Sydney importing company has US$5 million to pay in three months. With AUD/USD at 0.6600 and the three-month forward at 0.6620, the forward fixes the AUD cost at A$7.55 million whatever the rate does. The zero-cost collar leaves the cost floating between a floor at 0.6400 and a cap at 0.6900: protected if the Australian dollar falls below the floor, but giving up the benefit if it rises above the cap. Lower on the chart is cheaper.

Bitcoin: four ways to shape a holding

A holder of 400 BTC with spot at US$60,000 and the forward at US$66,000. The collar sets a floor and a cap at zero premium. The forward plus a bought call fixes the price and buys the upside back above US$72,000, for a premium. The participator fixes half the position and leaves the rest open. The covered call receives a premium today and gives up gains above US$70,000, with no protection below. Higher on the chart is a higher value for the holding.

Illustrative payoffs at expiry, before margin and funding. Strikes, rates and sizes are chosen for clarity and are not quotes. Green: better than unhedged. Red: worse than unhedged.

Why clients trade these structures

To fix or bound a cash flow they already know is coming. A miner selling next quarter's production, a payments company with a US dollar payable due in ninety days, a fund with a redemption to meet in AUD. The exposure exists whether or not it is hedged; a forward or collar replaces an unknown rate with a known one, or with a known range, so the budget holds whatever spot does in between.

To change the shape of a holding without selling it. A treasury or family office that wants to keep its bitcoin, or its foreign-currency balance, but not its full exposure to the price. A collar sets a floor and a cap on the position; a covered call receives a premium today in exchange for giving up gains above the strike. The asset stays where it is, and the return profile changes.

In both cases the client is choosing which outcomes to give up in order to remove others. The desk prices the trade-off; it does not advise on whether to take it.

Execution and margin

Pricing is on request by chat, UI or API. The desk returns a firm, dealable quote with strikes, premium or forward rate, and settlement terms; on acceptance a confirmation issues under the client agreement. Margin is posted in any fiat currency or crypto asset, with variation margin on mark-to-market moves. Crypto posted as margin is itself marked to market. Positions can be unwound or restructured at market before expiry, which realises the gain or loss at that point.

Settlement

Settlement runs on the same rails as the OTC spot desk: same-day in 27 fiat currencies through the Neo-X Global Settlement Network, or on-chain to the client's nominated address.

Who it is for

Wholesale clients only, under sections 761G and 761GA of the Corporations Act 2001 (Cth): corporate and Web3 treasuries, payments companies and MSBs, family offices, fund managers, exchanges, dealers and brokers. Neo-X does not give personal advice or assess suitability. The desk shows the payoff under adverse and favourable scenarios before dealing, and the client decides.

Access

Existing OTC clients can request derivatives pricing from the desk directly - subject to suitability approval. New clients email sales@neox.au or call (02) 9136 0264. Desk hours 8am to 10pm AEST, with 24-hour support.

Neo-X Financial Pty Ltd holds AFSL 558430. Client-facing services are provided by Neochain Pty Ltd, CAR 001320366. Wholesale clients only. Neo-X acts as principal, makes markets, hedges across listed and OTC venues and its own inventory, and may hold positions in the assets it quotes. Derivatives carry risk, including loss exceeding any premium received and margin calls. Nothing on this page is financial product advice.