Market Makers – Eq Muscle Release Thu, 21 Oct 2021 22:29:58 +0000 en-US hourly 1 Market Makers – Eq Muscle Release 32 32 Why it matters when transactions settle Thu, 21 Oct 2021 22:26:33 +0000

TIL PEANS which followed the recent retirement of KKR Founders Henry Kravis and George Roberts, formerly the chief barbarians of private equity, point out that the history of Wall Street is a story of big deals, daring deals and the people behind them. Those further behind them, in the back offices of banks, brokers and buyout companies, barely glance at it. Of course, their world is colorless compliance and “post-trade” processes like clearing and settlement. These are the plumbers of finance, working behind the scenes to make sure the plumbing is working, well. Every now and then, however, there is a gurgling noise loud enough to disturb even those arrogant colleagues up front.

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The stock market settlement system – making sure the buyer gets their security and the seller their money – was strained during covid-induced volatility in March 2020. It cracked again at the start of this year amid the frenzy of meme swapping in GameStop actions. A report from regulators on the episode, released Oct. 18, curtly noted that post-trade processes, “normally in the background, have entered the public debate.” It was thanks to spikes in margin calls and volatility-induced settlement risks that Robinhood, a retail broker, restricted trading in GameStop shares, causing an uproar.

The risk is a function of time. The longer it takes to complete the trade, the greater the ‘counterparty’ risk, or the possibility that one party or the other will not succeed, as anyone caught in the middle of Lehman Brothers or Archegos Capital collapsed. And, therefore, the larger the margin payments that brokers and investors have to make to clearing houses.

Hence the long-term effort to reduce transaction processing times, from 14 days (“T+14 “in the jargon) in the 18th century, when certificates were carried by horse and boat; less than a week after the reforms following the paperwork crisis on Wall Street in 1968, when a boom commercial forced the stock exchanges to close one day a week for months to allow the boys in the back room to catch up; to T+5, then T+3, and, four years ago, T+2.

Still, a lot can happen in two days on Wall Street, so why stop there? Driven by the market turmoil of the past year, a group representing banks, investors and T+1 and should unveil a plan to get there in a few weeks. The signs are that the Securities and Exchange Commission will bless him. If this is the case, the halving of the settlement time could take place as early as 2023. Europe, for its part, would probably follow suit.

Lest anyone think the titans of finance are softening up, it’s worth pointing out that they’re not pushing this just for the greater good. They are as interested in reducing their own costs as systemic risks. During the market turmoil of last year, the overall margin demanded by the DTCC, the US equity clearing agency, quintupled to more than $ 30 billion a day. Hundreds of billions more per year are linked by “nondelivery” delays, due to payment defaults (the causes of which range from typing errors to more sinister practices such as deliberate failure to achieve the goal. to manipulate the price of a share). Unlocking this capital would leave financial firms much more to invest profitably.

Why then stop at a settlement in a day? Evangelists of so-called distributed ledger technology tout the possibility of going to T+0, known as the “atomic” regulation. It seems technically feasible; in fact, some broker-to-broker transactions in the DTCC are already settled on an almost instantaneous basis.

But is it desirable? There is a big difference between reducing settlement time and eliminating it. In the latter case, the buyer should be pre-financed and the seller immediately ready to trade. Every element of a complex process should be synchronized, with no margin for error. It may also require a heart-wrenching restructuring of the giant securities lending market, which is designed to accommodate a settlement with a lag in time.

Cue cries of “Luddite!” But Buttonwood is in good company to advocate maintaining some redundancy in the process. Ken Griffin, boss of Citadel, one of America’s biggest market makers, and therefore no techno-slouch, described real-time settlement as “a bridge too far” because it requires “everything. [to] work perfectly in a world where there are still people involved ”. The message is clear: pushing things too far could replace one set of risks with another, more frightening, in which a small number of failed trades would trigger a chain reaction in back offices around the world. Atomic indeed.

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This article appeared in the Finance & Economics section of the print edition under the title “When the pipes crack”

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MonoX announces the launch of the public mainnet on Ethereum and Polygon Wed, 20 Oct 2021 15:26:22 +0000

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The mainnet launch comes just weeks after MonoX raised $ 5 million to disrupt traditional DEXs and eliminate inefficiencies in the DeFi ecosystem using one-sided liquidity pools.

MonoX is preparing to launch

MonoX protocol, the most capital efficient automated market maker (AMM) in the DeFi space, is delighted to announce the launch of its highly anticipated mainnet with full swap and liquidity features on Ethereum and Polygon. The mainnet is the culmination of over a year of hard work, continuous development and testing.

While traditional DEXs have lowered the barrier significantly for projects that launch their tokens, it is still expensive for projects to launch their tokens as they have to deposit two tokens to build the liquidity pair. MonoX’s innovative one-sided liquidity pools eliminate the need for developers to bring in another asset, making it economical for projects to launch their tokens.

MonoX also provides an optimized and more capital efficient experience for liquidity providers (LPs) and traders. LPs only need to deposit one token into the cash pool, and they will receive fees for swaps and borrowings. Traders will find that trading tokens on MonoX is much cheaper than the alternatives. The platform helps reduce trading costs by avoiding the long transaction paths seen on traditional automated market makers (AMMs).

The official liquidity pools at launch are:

  • Ethereum: ETH, WBTC, USDC, USDT

MonoX plans to add more official pools in the coming months. However, untrusted ad pools will be live when the product is initially launched. Untrusted pools allow any person or project to throw their token without authorization. All you need to do is set an initial price and deposit cash for the token. It bundles the deposited tokens into a virtual pair with its own vCASH stablecoin, which is backed by all the assets of the MonoX pools.

MonoX is also a capital efficient solution for injecting liquidity into value-backed tokens (VBTs) such as synthetic assets, fractional NFTs, insurance tokens and gambling tokens. intrinsic value, projects and users do not need to secure them a second time with a cash pair.

Speaking on this key project inflection point, MonoX co-founder and CEO Ruyi Ren said:

“MonoX will be a key element and a catalyst for DeFi 2.0. With our product, it is finally possible and easy to make innovative projects and Value Backed Tokens (VBT) negotiable without any requirement of capital or collateral.

MonoX is the most capital efficient Automated Market Maker (AMM) in the DeFi ecosystem. It enables developers, traders and liquidity providers to participate in an open, accessible and capital efficient market. MonoX aims to revolutionize DeFi by correcting the capital inefficiencies of first generation protocol models. Its one-sided liquidity pools and vCASH stablecoin make it easy to reduce trading fees, capital efficiency, and the ability to launch tokens without any additional capital.

For more information contact Hugh Flood at [email protected] or visit the website.

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ETF Liquidity – key information about the technology Tue, 19 Oct 2021 10:02:49 +0000

Perhaps every trader who decides to start a cryptocurrency business and wants to have a go at the Forex market is faced with an abundance of different options. The ETF is one of the most popular solutions.

ETFs are a simple and affordable product that does not require special knowledge and can be quite liquid in both primary and secondary markets. With this overview, you will be able to learn about the important features and nuances of this process.

Instruments used for ETFs

First of all, a novice trader, who start a cryptocurrency business, must understand what an ETF is and why it has so many important advantages. ETF is a short name for Exchange-trader funds.

These funds offer clients various goods, stocks, currencies, accept bitcoin payments, etc. In addition, the value of a fund’s shares often depends on stock market indices (S&P, Dow Jones). Conclusion – the price of assets depends (upward or downward) on stock market indices.

Example. The investor wants to buy 100 ETF shares for the Dow Jones 500. If the index has risen by 15% since the start of the period, then it will only receive 15% of the profit. The amount of money also depends on the internal nuances.

ETF liquidity

Successful traders and investors know that liquid assets can generate good returns. Therefore, they choose a liquidity provider and invest. But you should also be careful with ETFs. Because these funds can issue additional shares if necessary. Therefore, before cooperating with ETFs, it is necessary to analyze the liquidity of assets, not funds.

Chris Hampstead, an internationally renowned and recognized ETF expert, noted that no one can say that an ETF is illiquid if its weekly trading volumes are low. Because a trader invests in a commodity that depends on indices. In the case of efficient day-to-day trading, the transaction volumes of all participants do not matter. And liquidity can remain high even with minimal trading volumes.

Also pay attention to the ETF market when starting crypto exchange trading. It is divided into primary and secondary. Understanding these aspects helps you learn more about fund liquidity and the mechanisms that affect ETF performance. The main players in the primary market are ETF providers offering assets in the form of products. Then the provider issues shares to authorized members. The next step is for traders and investors to buy ETFs on special platforms and exchanges.

How ETF liquidity works

The liquidity of brokers is becoming one of the most important factors for traders and investors. In addition, some brokers only work with trusted investors, thus avoiding cooperating with third parties. But this approach has some drawbacks. Because the spreads of brokers who are market makers can be much higher than those of other companies or sites. Consequently, their attractiveness to ETF providers will decrease. Liquidity providers directly connect a brokerage firm with the market.

It is also worth understanding why ETF liquidity is an important criterion. The reason is that with low spreads, a trader can buy or sell stocks and other commodities at an optimal price. This means that brokers should partner with reliable and quality ETF liquidity providers. The B2Broker platform is the perfect solution in this case. The company offers the best conditions, constantly improves and introduces innovative technologies. Thanks to this approach, B2Broker is a quality liquidity aggregator and one of the leaders in the segment and is ready to offer its clients optimal conditions to help partners enter the financial markets. One of the important advantages of B2Broker is the minimum spread (0.01%), seven convenient trading instruments and maximum efficiency (the average time to close / open a trade is 68 milliseconds).

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Malaysian stock market has a firm lead for Monday’s trade Sun, 17 Oct 2021 23:30:31 +0000

(RTTNews) – The Malaysian stock market rebounded higher on Friday, a session after ending the seven-day winning streak in which it had climbed nearly 75 points or 4.9%. The Kuala Lumpur Composite Index now sits just below the 1,600 point plateau and is expected to extend its gains on Monday.

Global forecasts for Asian markets are bullish thanks to strong earnings news and continued support from crude oil prices. The European and American markets were on the rise and Asian stock markets should follow suit.

The KLCI ended slightly higher on Friday as gains in plantations and telecommunications were limited by weakness from glove makers and a mixed picture in finances.

For the day, the index added 5.76 points or 0.36% to end at 1,598.28 after trading between 1,592.67 and 1,599.76. The volume was 4.961 billion shares worth 3,004 billion ringgit. There were 627 winners and 419 losers.

Among assets, Axiata jumped 2.24%, while CIMB Group and Petronas Gas both gained 0.59%, rose 1.38%, Genting gained 1.16%, Genting Malaysia jumped 1.58%, Hartalega Holdings fell 3.22%, IHH Healthcare fell 0.59%, IOI Corporation gained 1.00%, Maxis added 0.63%, MISC climbed 1.54 percent, MRDIY increased 0.54 percent, Petronas Chemicals and Hong Leong Bank both decreased 0.11 percent, PPB Group increased 0.33 percent, Press Metal increased fell 0.16 percent, Public Bank collected 0.24 percent, RHB Capital jumped 1.59%, Sime Darby climbed 1.73%, Sime Darby Plantations gained 0.93%, Tenaga Nasional improved 0.21%, Top Glove fell 1.08% and Dialog Group, Kuala Lumpur Kepong, Maybank and Telekom Malaysia remained unchanged.

Wall Street’s lead is generally positive as the major averages opened solidly in the green on Friday and stayed that way throughout the session.

The Dow Jones jumped 382.20 points or 1.09% to close at 35,294.76, while the NASDAQ jumped 73.91 points or 0.50% to close at 14,897.34 and the S&P a increased 33.11 points or 0.75% to end at 4,471.37. For the week, the Dow Jones gained 1.6%, the NASDAQ rose 2.2% and the S&P gained 1.8%.

Another batch of positive earnings news fueled the rally, led by financial giant Goldman Sachs (GS) and aluminum producer Alcoa (AA), among others.

Buying interest was also generated in response to a Commerce Department report showing an unexpected increase in retail sales in the United States in September. Additionally, the Labor Department said U.S. import prices rose less than expected last month.

Crude oil futures stabilized considerably higher on Friday after the International Energy Agency said demand for oil is likely to rise significantly due to the energy crisis supporting price. West Texas Intermediate crude oil futures for November rose $ 0.97 or 1.2% to $ 82.28 a barrel. For the week, WTI crude oil futures gained 3.7%, up for the eighth consecutive week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Guernsey Regulator Approves Launch of Jacobi Asset Management Bitcoin ETF By Cointelegraph Sat, 16 Oct 2021 16:40:00 +0000

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Jacobi Asset Management, a London-based multi-asset investment platform, has received approval from the Guernsey Financial Services Commission (GFSC) to launch a (BTC) exchange-traded funds (ETFs).

Speaking to Cointelegraph, Jamie Khurshid, CEO of Jacobi Asset Management, said regulatory clarity helps businesses and institutions get involved in safe Bitcoin investments without all of the risks associated with technology and counterparties.