The crypto-derivative trading method has posed significant risks since many years. Most importantly, when it comes to executing combination trades the situation worsens making the upcoming trades further unstable.
With that being said, a newly announced partnership between Paradigm and cryptocurrency derivatives exchange Deribit comes as a sigh of relief for institutional investors, who have, till now communicated over Skype and Telegram while manually coordinating order book execution.The exchange for futures and options on Bitcoin and Ethereum will allow crypto-derivative traders to execute and negotiate orders on the platform.
Furthermore, the new multi-instrument Block Trading Solution will eliminate risks efficiently as the public tape will be displayed as block trades.
From The COO’s Desk
“This solution allows you to negotiate deals privately on Paradigm and have them centrally cleared on Deribit, eliminating execution risks like front running. It’s a crucial step in onboarding institutional traders in the world of crypto.” Marius Jansen, COO and Co-Founder of Deribit
Automatic Settlement of Price Negotiations
It is an added benefit for OTC digital asset traders as the system will automate price negotiations and workflows. Further, the system provides the users with management tools. The tools help in approving specific counterparties before a trade is carried out. Moreover, it also provides a full directory of potential counterparties.
Presently, block trading will be available on the Paradigm system and directly on Deribit via API. However, Paradigm will not be accessible to US citizens as well as some other minor territories.
Interestingly, this news come just after Bakkt’s futures launch date announcement, which brings added advantages to the crypto trading community.