Will HFT be possible on Counterparty?
Devil’s advocate: why would sophisticated traders use something like Counterparty if trades don’t execute instantly?
Parry this if you will.
[quote author=Polo link=topic=153.msg1049#msg1049 date=1393811925]
Will HFT be possible on Counterparty?
Devil’s advocate: why would sophisticated traders use something like Counterparty if trades don’t execute instantly?
Parry this if you will.
[/quote]
It won’t be possible in any form that I see feasible.
Why use DEX? Counterparty risk. Zero counterparty risk - ie no risk associated with trading on an exchange and no risk the counterpart will not meet their obligations.
The DEX doesn’t compete against an existing highly liquid exchange traded market, where counterparty risk is low anyway.
The DEX does compete against existing OTC markets which deals are often executed in timeframes of days or hours where counterparty risk is a big issue. In OTC markets, institutional banks will only trade interdealer or interbank due to counterparty risk.
[quote author=Global_trade_repo link=topic=153.msg1050#msg1050 date=1393814023]
[quote author=Polo link=topic=153.msg1049#msg1049 date=1393811925]
Will HFT be possible on Counterparty?
Devil’s advocate: why would sophisticated traders use something like Counterparty if trades don’t execute instantly?
Parry this if you will.
[/quote]
It won’t be possible in any form that I see feasible.
Why use DEX? Counterparty risk. Zero counterparty risk - ie no risk associated with trading on an exchange and no risk the counterpart will not meet their obligations.
The DEX doesn’t compete against an existing highly liquid exchange traded market, where counterparty risk is low anyway.
The DEX does compete against existing OTC markets which deals are often executed in timeframes of days or hours where counterparty risk is a big issue. In OTC markets, institutional banks will only trade interdealer or interbank due to counterparty risk.
[/quote]
+1