November 15, 2023
Welcome to the first edition of Paradigm Profiles, a series highlighting our clients' successes in crypto derivatives trading. In each feature, we'll spotlight our partners' strengths and how Paradigm’s liquidity enhances their operations. This narrative underscores both their innovations and Paradigm's role in their business models.
Rene van Kesteren and Yev Feldman founded SwapGlobal in 2022 to craft an electronic, API-first ISDA swap dealing platform with a significant focus on crypto. SwapGlobal aligns perfectly with Paradigm's vision to automate crypto derivative trading, ensuring seamless integration, transparency, and efficiency.
In light of the liquidity void left by the closure of prominent OTC desks, SwapGlobal steps forward not just as another derivatives dealer, but as a pioneer in automation around crypto’s operational and regulatory processes. Trading bilaterally with hedge funds, family offices, and miners, SwapGlobal specifically addresses the unique challenges of trading crypto via swap and options.
Operational Simplicity: SwapGlobal removes the complications of handling multiple crypto wallets or various trading venue connections.
Hassle-Free Compliance: Standing firmly on the ISDA framework, SwapGlobal has taken the intricacies of U.S. regulations and distilled them into a straightforward and reliable compliance process.
Cutting-Edge Interface: With its modern UI & API, SwapGlobal makes risk management and trade tracking a breeze for users.
For more details, visit SwapGlobal’s website.
Paradigm Bridges SwapGlobal's Liquidity Gap
Serving a diverse clientele from hedge funds to bitcoin miners, SwapGlobal requires on-demand, institutional-grade liquidity to adeptly manage trading risks against their OTC counterparties. Paradigm delivers this pivotal solution as the premier interdealer market for options, bridging liquidity gaps and ensuring seamless transactions among crypto options’ leading market makers.
As Yev aptly puts it, "Without Paradigm, our inventory management would be cumbersome, and reaching out to offshore entities would be a prolonged process." Yev explains below how Paradigm streamlines SwapGlobal's hedging operations and magnifies its core competencies.
What were the most significant pain points SwapGlobal experienced in crypto derivatives trading, and how has Paradigm addressed and mitigated these challenges?
“Our main pain point before Paradigm was pricing package transactions such as call spreads. Every OTC dealer has a different way they want to price and look at things. Paradigm offering multi-leg transactions through a unified interface is a game changer and brought a lot of market transparency.”
How has Paradigm’s multileg atomic settlement and extensive network of market makers ensured optimized execution and liquidity, particularly during volatile markets?
“ Paradigm standardizing around using platforms like Deribit for clearing means that dealers can all quote against a single contract spec and a single source of counterparty risk. It is scary to think how illiquid the crypto derivatives market would have been without Paradigm.”
Join Paradigm for free here if you face similar crypto derivatives liquidity challenges!