Will crypto exchanges grow up to meet the stringent demands that regulators will place on them?
Bloomberg
This article was written by Tom Higgins, CEO of Gold-i.
I have recently begun hungrily devouring all the knowledge I can around cryptocurrency trading as not a day goes by without it being discussed somewhere. It really seems to be the Wild West at the moment with seemingly hundreds of cypto exchanges popping up everywhere, all with the 'nirvana' of offerings.
Now as I started my working life designing the first automated trading platform (Called APT) for LIFFE as a PA Consulting group consultant and then went on to head IT at the International Petroleum Exchange, I do know a bit about how large-scale exchanges work.
The difference between the new crypto exchanges and existing exchanges (also known as RIEs, or Recognised Investment Exchanges) is vast.
Mind The Gap!
The new exchanges don't, in fact, look like exchanges at all, but more like a retail platform with payment, CRM, and affiliate marketing bolted together. The RIEs have some knowledge of crypto trading but little about retail trading.
The second big area of confusion is between margin trading and physical trading. In the retail FX world that I live in, never the twain shall meet as they serve very different masters. But in the crypto world there is no distinction (yet) and this causes massive confusion.
Just imagine the difference between exchanging GBP for USD to go on holiday to punting in the GBP/USD market with a leverage of 1:100, and trying to use the physical exchange to punt on!
It doesn't bear thinking about, but that is just what is happening in the crypto world. So we need to develop the idea of a real margin crypto market with some leverage (probably very small due to the high volatility) with an aggregated executable price feed across multiple crypto exchanges to give the best option for price discovery and trading.
This all cries out for the introduction of a derivatives market for cryptos, such as the CFDs we have as a proxy for equities in the stock exchanges. CFDs allow people to trade on the price move without ever having the bother of owning the actual stock. Brokers will often hedge CFDs against real stocks in the market, in order to manage their risk.
Transactions can be recorded quickly but are not validated as legitimate until a consensus of miners has run their proof of work. As the public blockchain is growing all the time and there is a maximum data rate allowable, this validation can take from 10 minutes to a couple of hours.
The question has to be asked - "What happens if validation fails, and how does the trade unwind?" The answers I have had to this vary from 'no Idea', 'it doesn't matter', to 'the exchange, acting as a broker, owns this and will stand by the trade'. This is analogous to a futures trade that is cleared by a clearing house. The bilateral traders are counterparties to the trade until it is 'novated' to the clearing house, and therefore carry counterparty risk.
It's a Mad Mad World
Full depth pricing in Bitcoin can be a scary place to be, as liquidity is so fragmented, and volatility is so high. It can be difficult to know the real price of a Bitcoin all the time. This brings in an interesting idea that the Chicago Mercantile Exchange (CME) brought to market fairly recently to solve this issue; the CME Bitcoin Real Time Index.
CME take 6 or so crypto exchange Bitcoin prices and build a reference price in real time, discarding prices that fall too far out of line. This can then be used by anyone as the current real price of Bitcoin. It is currently free to use, but that may change over time as exchanges do like to charge for data and it is a significant revenue stream for them.
Ethereum, for example, is taking a novel approach to the slow validation issue by introducing proof of stake rather than proof of work. Look here to understand this very complex idea! It aims to achieve consensus and validation much more quickly than can be achieved with proof of work, but time will tell if it is accepted.
FM
The End Game
Ultimately all cryptocurrency trading will take place on exchanges, but will this be existing RIEs like CME that adapt to the new world or the current crypto exchanges that will have to grow up to meet the stringent demands regulators will place on them?
Due to their scale I think the RIEs have a good chance of winning, but they need to move mindset from where they are now to a more flexible, cheaper, and directly connected place. Equally, the new exchanges have no legacy systems and are quick to move so can build the necessary functions very quickly. Time will tell I guess.
Whilst we are definitely still in the hype phase, cryptocurrencies are here for good and will be part of our future, there is no doubt about that.
This article was written by Tom Higgins, CEO of Gold-i.
I have recently begun hungrily devouring all the knowledge I can around cryptocurrency trading as not a day goes by without it being discussed somewhere. It really seems to be the Wild West at the moment with seemingly hundreds of cypto exchanges popping up everywhere, all with the 'nirvana' of offerings.
Now as I started my working life designing the first automated trading platform (Called APT) for LIFFE as a PA Consulting group consultant and then went on to head IT at the International Petroleum Exchange, I do know a bit about how large-scale exchanges work.
The difference between the new crypto exchanges and existing exchanges (also known as RIEs, or Recognised Investment Exchanges) is vast.
Mind The Gap!
The new exchanges don't, in fact, look like exchanges at all, but more like a retail platform with payment, CRM, and affiliate marketing bolted together. The RIEs have some knowledge of crypto trading but little about retail trading.
The second big area of confusion is between margin trading and physical trading. In the retail FX world that I live in, never the twain shall meet as they serve very different masters. But in the crypto world there is no distinction (yet) and this causes massive confusion.
Just imagine the difference between exchanging GBP for USD to go on holiday to punting in the GBP/USD market with a leverage of 1:100, and trying to use the physical exchange to punt on!
It doesn't bear thinking about, but that is just what is happening in the crypto world. So we need to develop the idea of a real margin crypto market with some leverage (probably very small due to the high volatility) with an aggregated executable price feed across multiple crypto exchanges to give the best option for price discovery and trading.
This all cries out for the introduction of a derivatives market for cryptos, such as the CFDs we have as a proxy for equities in the stock exchanges. CFDs allow people to trade on the price move without ever having the bother of owning the actual stock. Brokers will often hedge CFDs against real stocks in the market, in order to manage their risk.
Transactions can be recorded quickly but are not validated as legitimate until a consensus of miners has run their proof of work. As the public blockchain is growing all the time and there is a maximum data rate allowable, this validation can take from 10 minutes to a couple of hours.
The question has to be asked - "What happens if validation fails, and how does the trade unwind?" The answers I have had to this vary from 'no Idea', 'it doesn't matter', to 'the exchange, acting as a broker, owns this and will stand by the trade'. This is analogous to a futures trade that is cleared by a clearing house. The bilateral traders are counterparties to the trade until it is 'novated' to the clearing house, and therefore carry counterparty risk.
It's a Mad Mad World
Full depth pricing in Bitcoin can be a scary place to be, as liquidity is so fragmented, and volatility is so high. It can be difficult to know the real price of a Bitcoin all the time. This brings in an interesting idea that the Chicago Mercantile Exchange (CME) brought to market fairly recently to solve this issue; the CME Bitcoin Real Time Index.
CME take 6 or so crypto exchange Bitcoin prices and build a reference price in real time, discarding prices that fall too far out of line. This can then be used by anyone as the current real price of Bitcoin. It is currently free to use, but that may change over time as exchanges do like to charge for data and it is a significant revenue stream for them.
Ethereum, for example, is taking a novel approach to the slow validation issue by introducing proof of stake rather than proof of work. Look here to understand this very complex idea! It aims to achieve consensus and validation much more quickly than can be achieved with proof of work, but time will tell if it is accepted.
FM
The End Game
Ultimately all cryptocurrency trading will take place on exchanges, but will this be existing RIEs like CME that adapt to the new world or the current crypto exchanges that will have to grow up to meet the stringent demands regulators will place on them?
Due to their scale I think the RIEs have a good chance of winning, but they need to move mindset from where they are now to a more flexible, cheaper, and directly connected place. Equally, the new exchanges have no legacy systems and are quick to move so can build the necessary functions very quickly. Time will tell I guess.
Whilst we are definitely still in the hype phase, cryptocurrencies are here for good and will be part of our future, there is no doubt about that.
As event contracts are set for ‘super-cycle’ growth in volumes and recognition, retail brokers simply can’t stay behind. But can regulated entities integrate a product that is awfully similar to betting?
Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
As event contracts are set for ‘super-cycle’ growth in volumes and recognition, retail brokers simply can’t stay behind. But can regulated entities integrate a product that is awfully similar to betting?
Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
As event contracts are set for ‘super-cycle’ growth in volumes and recognition, retail brokers simply can’t stay behind. But can regulated entities integrate a product that is awfully similar to betting?
Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
As event contracts are set for ‘super-cycle’ growth in volumes and recognition, retail brokers simply can’t stay behind. But can regulated entities integrate a product that is awfully similar to betting?
Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Regional Focus: Thailand, Vietnam
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Bangkok is consolidating as Southeast Asia's broker hub for CLMV access, while Vietnam's trading volumes have made it harder to ignore from any regional headquarters. Most brokers know both exist. Fewer have tested what operating there actually requires.
This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
Join The Club: What Premium Clients Want
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
