Moore & Van Allen Advises on First OTC Compute Derivatives Transaction

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 reflects the continued evolution of financial products at the intersection of derivatives markets, AI infrastructure, and the rapidly developing market for compute. As demand for, and availability of, high-performance processing power continues to grow, market participants are increasingly focused on compute pricing, price discovery, and risk management solutions for this emerging area.

Industry participants have a need to hedge exposure and manage volatility tied to AI-driven infrastructure and this transaction demonstrates that derivatives markets can adapt and develop to address compute price risk.

MVA attorneys Barrett Morris and Stuart Armstrong led the effort.

Read more: FalconX announcement