“Panelists Discussed Challenges and Opportunities in Crypto, Including Managing Counterparty, Credit and Market Risks 24/7.”, – WRITE: www.coindesk.com
“You have traditional players who have come into the Space Now, Especially for Us, MOST OF OUR TRADING HAPPENSS Exchanges, “Gautam Sharma, CEO and CIO OF BREVAN HOWARD SAID. “SO THE TECHNOLOGY HAS Come Far Ahead in Terms of the Last 18 MONTHS SINCE THEN, [but] there’s more work to do. ”
Sharma Stressed the NEED FOR 24/7 Risk Management, Including Market, Counterparty, and Credit Risks.
Counterparty Risk Refers to the Possibility of One Party Involved in A Transaction Failing to Meet ITS Obligation, Resulting in A Loss to The Other Party. This Type of Risk is Higher in Crypto than in Traditional Finance, Given The Absense of Intermediaries Such as Banks or Clearing Houses that ENSURE TRUST AND SETTLES Directional and non-Directional Arbitration Players.
“WHEN WE do arbitrage, The Counterparty Risk is the most Important One,” Fabio Frontini, Founder of Abraxas Capital Management, Said, Adding that Credit Risk Is Also Also.
Frontini Stressed the Importance of Simulating Stress testing Scenarios, Referring to the Perpetual Futures Market WHERE USERS CAN LOSE The Margin Whene Sapped OUT of MARK. “IT [stress testing] Can Be Very Rewarding, Who Done Properly, “Frontini Added.
Mike Kuehnel, CEO of the Market-Making Firm Firm Flow Traders, Highlighted the NEED TO MAKE INNOVATION TRANSPAREN AROUND IT. ”
“Getting The Best Price and Giving You The Possibility to Transact WHENEVER YOU WANT TO IS A Key Ingredient,” Kuehnel Added.
Liquidity, or the abity of the Market to Absorb Large Orders at Stable Prices, Emerged As a Significant Concern Following the Collress of FTX and ITS SISTER CONCERN, ALAMEDA. While The Order Book Depth Has Surely Improved for Major Coins, Fratory or Distribution of Liquidity Across Multiple Defi Platforms, Blockchains and Networks, Remains A CONNAINS.
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