Jamil Nazarali, chief executive of spot crypto venue EDX Markets, said its separate quotes for retail and institutional investors will be a differentiator as it enables tighter prices and better execution.
Nazarali was formerly global head of business development at Citadel Securities, told Markets Media his years of experience in traditional finance and bringing in new innovations is really valuable.
In June this year EDX Markets announced the launch of its digital asset market and the completion of an investment round with new equity partners.The initial products that will be traded on EDX include Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
A differentiator for EDX is that it will be providing separate quotes for retail and institutional investors, and also increasing transparency by providing the full depth of book, according to Nazarali.
“Our retail-only will bring participants the benefit of tighter prices due to the involvement of multiple market makers,” he added.
The company recently closed a new funding round with additional strategic investors, including Miami International Holdings and market makers DV Crypto, GTS, GSR Markets LTD, and HRT Technology. They join founding investors who include traditional financial firms such as Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital and Virtu Financial.
Trades will be netted and settled on the blockchain for greater speed and efficiency at lower cost, eliminating the need for expensive bilateral settlement. Similar to traditional finance, assets will be held in a network of independent digital custodians.
EDX does not need regulatory approval to operate a spot crypto exchange, but also has plans to launch a clearinghouse, which will need regulatory authorisation. EDX Clearing will settle trades matched on EDX Markets allowing participants to benefit from enhanced price competition and reduced settlement risk. Nazarali argues that EDX Clearing will also be a differentiator by enhancing competition and creating operational efficiency through a single settlement process.
