Moore & Van Allen Advises FalconX on First OTC Compute Derivatives Transaction

"Moore & Van Allen advised FalconX on structuring and documenting a first-of-its-kind OTC derivative tied to the forward price of compute. The deal addresses price discovery, risk management and hedging of volatility for AI infrastructure as demand for high-performance processing grows."

Moore & Van Allen advised FalconX on the structuring and documentation of a first-of-its-kind over-the-counter (OTC) derivative transaction based on the forward price of compute. The transaction establishes an OTC derivative referencing the forward price of compute, reflecting the convergence of derivatives markets, AI infrastructure and the emerging market for compute. It is designed to support price discovery and provide risk management solutions for market participants facing exposure to compute pricing. As demand for and availability of high-performance processing power continue to expand, market participants are increasingly focused on compute pricing, price discovery and mechanisms to hedge volatility tied to AI-driven infrastructure. This transaction demonstrates how derivatives markets can adapt to address compute price risk. Moore & Van Allen represented FalconX with a team composed by: Barrett Morris and Stuart Armstrong.

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Moore & Van Allen Advises FalconX on First OTC Compute Derivatives Transaction

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Moore & Van Allen Advises FalconX on First OTC Compute Derivatives Transaction

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