The JDB Report is diving deep into crypto market structure to understand why things went haywire on October 10, causing $19 billion in liquidations of positions that should have been solvent. Read our summary here.
Arnab Sen, CEO and co-founder of GFO-X in London, argues that financial institutions will not embrace crypto markets trading in its current form, and explains what the October 10 flash crash highlights as areas for change. GFO-X is a UK-regulated, Abu Dhabi-licensed, centrally cleared trading venue for digital-asset derivatives, and Arnab wants to bring central counterparty frameworks to crypto markets.
Related interviews:
Related interviews: Joshua Tobkin of Supra, on oracles.
Brian Norman and David Qian of Auros, on market makers.
Adam Morgan McCarthy, on regulating crypto.
Timecodes:
0:00 - Arnab Sen, GFO-X
1:37 - Lessons from October 10: retail versus institutional leverage and how to unlock institutional trading
2:56 - Central crypto exchange structures and solving for credit in today’s pre-funded market
6:11 - What hedge funds want, but don’t yet have
7:52 - Can today’s crypto industry build the necessary infrastructure, and how does it balance different types of demand?
10:16 - Derivatives regulation in crypto, the limits to policing the market, and the value in building infrastructure
13:10 - Centralized versus decentralized exchanges
14:57 - Introducing clearinghouse infrastructure into crypto markets, and what means for margin and trading costs
16:50 - Global challenges and Bitcoin’s role in making faster settlement times work with T+1 in TradFi
19:50 - What market hubs/jurisdictions can drive change
