Seed Market is an institutionally-focused cryptocurrency spot market. Additionally, Seed Market serves as a CFTC-regulated and NFA-registered Introducing Broker (application pending, NFA ID: 0508732), for the submission of compression orders to Seed SEF.
An introducing broker (IB) is an individual or organization that solicits or accepts orders to buy or sell futures contracts, forex, commodity options, or swaps but does not accept money or other assets from customers to support these orders.
The act of submitting orders for Participants is regulated, requiring registration with the NFA as an IB or another similar membership type. Compression results processed by Zero Hash only become enforced when submitted back to Seed SEF, and as such, the results of each compression run are first provided to Seed Market. Seed Market verifies the results and then, if approved, submits said orders to Seed SEF on behalf of Participants of Seed SEF.
NFA Members must comply with NFA rules and CFTC regulations. These requirements are broad, and designed to protect traders and market stability. Specifically, IBs must: