True prime brokerage in crypto and digital asset markets has been a missing piece of the puzzle. Now that the largest trading firms in the world are looking to do business in the space, the need for cross-asset margining, reduced credit risk and broad market access - as well as highly-regulated, secure partners to support this - is more important than ever.
In this episode, RULEMATCH Spot On hosts Michael Higgins, Global Head of Business Development at Hidden Road Partners. Michael has extensive experience in trading and financial markets and served as Vice President at FXCM Pro and Managing Partner at Coronam ec Limited before joining Hidden Road Partners in 2019.
( 00:41) - Intro and the personal backstory with Hidden Road Partners
(4:55) - Understanding (real) prime brokerage in crypto
(6:33) - The issues with vertical vs horizontal market participation
(7:18) - A prime broker’s actual role
(9:20) - Clients - the largest trading firms in the world
(10:05) - How crypto markets will improve with prime brokerage
(12:28) - Current demand for major crypto assets and dollars
(13:51) - Counterparty risk and conflicts of interest
(15:26) - Dealing with risk at Hidden Road Partners
(16:50) - Development of tri-party, off-exchange solutions
(19:00) - Standardization with clearing/settlement and ISDA as an example
(19:59) - The sticky question of settlement’s future in crypto
(23:14) - The “mish-mash barrier” to institutional adoption
(24:16) - The speed of change in crypto market structure
(26:33) - Advantages and disadvantages of liquidity fragmentation in crypto
(29:54) - The growth of CLOBs and other market models - and TCA coming to crypto
(31:49) - The (future) dynamics of futures vs. spot in crypto
(35:30) - Hidden Road Partners admission to the CME
(38:16) - Why “regulatory-first” is important
(41:08) - What to look out for…
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Disclaimer:
The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.
