Bitcoin trading may be taken to a whole new level as Atlas ATS, a trading exchange platform provider, collaborates with Perseus Telecom, who provides high bandwidth, low latency communications for worldwide trading.
The solution will establish a globally integrated exchange system in New York, Hong Kong and Singapore allowing for high frequency trading firms and other financial institutions to trade digital currency.
Until now, Bitcoin trading has been relegated to cloud-based exchanges over the internet. The speed of a trade was thus subject to the slowest link in the chain between the computers/servers involved and their connectivity to the world wide web.
Jock Percy, chief executive officer of Perseus says, “Now, institutional investors and banks can see that there are known players with the right pedigree engaged in bitcoin.”
The partnership aims to get the best of both worlds of peaking interest in bitcoin trading and the advanced, regulated flavor of Wall Street. Other firms have also begun to leverage their experience and connections with the latter to get a foot up on the competition. Percy adds:
Why Flexibility Matters - What IS Prime, IS Risk Analytics Can Offer YouGo to article >>
“Perseus offers high precision trading access in colocation centres worldwide and adding ATLAS ATS as a new and highly liquid platform is an immediate response to customers demanding Bitcoin trading. The Perseus Digital Currency Initiative is providing governance strictly supporting KYC (Know Your Customer) and AML (Anti-Money Laundering) principals.”
Atlas ATS CEO Shawn Sloves said that the integration across multiple locations will effectively create a global order book as opposed to the “regionally focused, very fragmented” bitcoin trading environment that is “not considered Wall Street grade.”
The Atlas ATS matching engine provides matches in 30 millionths of a second.
Coins are to be stored in “100% cold storage”, something not commonly found with today’s cloud-based exchanges.
To be sure, it is unlikely that this advanced solution will be a game changer in increasing Bitcoin adoption amongst the broader financial community. It probably doesn’t fall into the category of “if you build it, they will come”. Cryptocurrency still needs to come a long way in terms of mainstream value for monetary transfer, security and stability before such advanced solutions find their niche.
The inherent volatility that is characteristic of cryptocurrency today is primarily a product of great uncertainty as to its value, not low liquidity, and therefore the solution should not help on this front. Furthermore, the extreme volatility may elicit an aversion from high frequency traders typically looking for more predictable opportunities. Perhaps the best bet for a surge in liquidity is the motivation provided by arbitrage opportunities waiting to be smoothed out.