Day: 9 July 2018

Credit, Not Custody, the Biggest Challenge in the Crypto Space

David Mercer, CEO of LMAX Exchange, talks about why a lack of credit, rather than custody solutions, is the biggest single challenge facing institutional market participants wanting to trade cryptoassets.

LMAX offers a crypto custody solution through LMAX Digital, and Mercer concedes that having platforms provide custody services is not necessarily ideal from a market structure perspective.

However, he quickly adds: If you look at LMAX Exchange’s business model I’ve always been regulated as a broker-dealer and I’ve alway been regulated as an MTF and there’s Chinese Walls between the two.

And Finally…

We speak a lot about disruption in FX markets, but more often than not we focus on the trading piece of the puzzle. It is not only there that traditional models and values are being challenged, however, as was highlighted early in the Asian trading day today when news of three resignations from the UK government was reported.
It is not a new phenomenon, but this morning offered a dramatic and, for the incumbents, disturbing insight into the future when the Twitter-sphere had the news out well in advance of the traditional news wires.