Still need crypto for 24/7 Risk Management, Tradfi panelists in Consensus Hong Kong are emphasized
The crypto ecosystem was the crypto event “held in Consensus Hong Kong on Wednesday.
“You have traditional players who have entered the space today, especially for us, most of our trading happens to the exchange of exchanges, where you actually keep your owners to the caregivers while You are able to exchange with exchanges, “Gautam Sharma, CEO and CIO of Brevan Howard said. “So technology has been preceded in advance in terms of the last 18 months since, (but) there is a lot of work to do.”
Sharma emphasized the need for 24/7 risk management, including market, counterparts, and credit risks.
The risk of the counterpart refers to the possibility of a party involved in a transaction failing to fulfill its obligation, resulting in loss to another party. This type of risk is higher in crypto than traditional finances, given the absence of mediators such as banks or cleaning houses that ensure trust and repairs, and this is a cause of the concern for both directions and non-direct arbitration players.
“When we make arbitration, the risk of counterpart is most important,” said Fabio Frontini, founder of Abraxas Capital Management, which added that credit risk is also very important.
Frontini emphasized the importance of stressing stress -test scenarios, which refers to the Perpetual Futures Market where users can lose margin when stopping a trade, which is not the case in the traditional market. “This (stress testing) can be very refward, when done properly,” Frontini added.
Mike Kuehnel, CEO of businessmen making business markets, emphasized the need to make a change of change to win the investor confidence and ensure “gaining data and transfer of liquidity without a fragmentation around it . ”
“Getting the best price and giving you the possibility of depressing whenever you want to be a key ingredient,” Kuehnel added.
The liquidity, or the ability of the market to absorb large orders at a stable price, has emerged as a significant concern following the fall of the FTX and the sister’s concern, Alameda. While the order of the order is certainly improved for major coins, fragmentation or distribution of liquidity on many defi, blockchain and network platforms, remains a remembrance.
