How can smartTrade’s historic emphasis on truly multi-asset trading platforms help players in the crypto markets adopt innovative trading systems?
The smartTrade platform has been designed from the ground up to handle multiple asset classes. Starting with instrument definition, the platform has the capability to design and manage different workflows that are unique to each asset class, and crypto is no different. Because we have experience of other asset markets, we have been able to apply core platform attributes to cryptocurrency trading, including security, stability, performance and scalability. This has allowed us to implement a solution that can add crypto alongside traditional asset classes, yet still meet the fast time to market and tight budget restraints of our clients.
SmartTrade has been selected by SEBA Crypto AG to provide the technology platform for trading in cryptocurrency and other more traditional asset classes. What specific capabilities is smartTrade providing for this implementation?
SEBA wanted a trading platform that could bridge the gap between traditional assets and cryptocurrencies, allowing it to trade all instruments through the same system, using the same workflows where appropriate. It needed access to multiple liquidity providers and to be able to hedge positions across multiple assets, including crypto. For SEBA, we are providing connectivity to many liquidity venues, order aggregation and execution, smart order routing (SOR), pricing distribution, order management and analytics. SEBA is also using our hosting and colocation capabilities as well as our real-time risk management tools. Finally, we were able to draw upon our considerable experience with Swiss clients to apply many compliance elements already in place to its crypto activities.
What capabilities can smartTrade address in the crypto space? Are there commonalities with other markets?
There are several key areas of commonality. Connectivity to crypto liquidity providers is one aspect, particularly since crypto is a fragmented marketplace with many different coins and other digital assets issued by different exchanges and other entities. As new crypto liquidity providers emerge, so market participants need the ability to connect to them rapidly and with little fuss so as to take advantage of new opportunities. Hedging and risk management is also important: Trading firms need to understand the value of their open positions so that they can get a view on risk and modify their trading strategies accordingly. Finally, an open platform with rich APIs is essential for integration with crypto wallets and the ability to leverage existing technologies while adding your own IP where needed.
What other types of opportunity for smartTrade’s trading systems in the crypto and digital asset segments?
SmartTrade has seen a number of initiatives in the crypto marketplace. Examples include allowing FX clients to add crypto to their offerings, and allowing liquidity venues to white-label our distribution capabilities. We have helped trading venues create internal and external markets using our cross asset trading platform and matching engine. Elsewhere, we are helping new market entrants to build their own central limit order books (CLOBs) across multiple assets including crypto. We are also providing access to aggregated exchange feeds to allow hedge funds and other firms to support custom trading algorithms that reflect their unique IP. More broadly, we are working with customers to explore how to leverage crypto markets technologies for specific use-cases. The possibilities are manifold and include, for example, the ability to capture and send post-trade data onto private and permissioned distributed ledgers, potentially giving firms an immutable audit trail of transaction records for analytical and regulatory purposes.