OKEx Financial Market Director makes his views on digital asset market in the event
With many institutional clients based in town, Singapore is like our another home in Asia. That’s why we decided to host our first Quant Meetup in the lion city on August 20. We are very delighted to have representatives of trading institutions such as TowerReseach, ThreeArrows, Orichal, Kernel, and Pysthagas gracing our event.
As the host of this meetup, Lennix Lai, Financial Market Director of OEKx, talked about the much-concerned trading volume problems and traders’ network latency arm-race in the panel discussion.
OKEx Quant Club — Social hub for institutional investors
Whether in legacy finance or the digital asset and blockchain space, institutional investors play a paramount role. Given that they are one of the main sources of market capital and they are deemed more sophisticated than retail traders in investment and risk management, they usually have a strong influence on market opinions and ecosystem development. The OKEx Quant Club, to this end, is here to serve institutional investors as a hub and community for information exchange and networking.
Not to incentivize wash trading
Wash trading has been a notorious issue in the digital asset market for years. Exchanges, large and small, have been rumored to be involved in it.
When asked about the wash trading problems in the crypto industry in the meetup, Lennix shared his thoughts.
“Unlike the traditional realm, the cost of wash trading is relatively low in the crypto industry. We do not incentivize them (wash traders). Our KYC checks can help identify wash traders, too.”
Since last year, OKEx has been tightening users’ withdrawal limits to encourage full KYC verification for all users. When more investors from traditional market are tapping into digital assets and blockchain, it is essential to continue our efforts in forging a fair, transparent, and orderly market.
Matching engine: a race of quality over speed
The industry is now seeing an arm-race between traders by spending millions of dollars on capital expenditure just for 1–2ms of advantage. However, instead of bringing liquidity and benefits to the market, the race may merely raise the entry cost of retail traders.
“Consistency is more important than speed. We should focus on the quality of the matching engine over speed,” Lennix shared his view over this matter in the meetup. “All customers, institutional and retail, should have the same access to our markets.”
More Quant Meetups to come
We would like to extend our appreciation to all participators for joining our event. We will hold more Quant Meetups for institutional clients in the coming months. Together with ventures investors, investment institutions, and fund managers, we will continue to drive the development of blockchain application and ecosystem to a global extent.
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