Dwolla payments to be used by derivatives exchange
Digital payment network Dwolla Inc. has struck a deal with derivatives exchange CME Group Inc. that will allow the exchange’s users to send and receive collateral payments in real time throughout the trading day, Bloomberg reported. The two companies have been working together on Dwolla’s first foray into the derivatives market since the world’s largest futures exchange invested in the Des Moines-based company in 2014, Dwolla CEO Ben Milne said. Payments will move over Dwolla’s network immediately rather than the three to five days it can take for funds to travel over the Automated Clearing House system, according to a description of the service on CME’s website. The deal with CME could mean the exchange is considering moving toward a more real-time system rather than conducting margin calls two or three times a day.