Ahead of London Summit 2018: Cryptocurrency Brokerage Creates New Challenge

Ahead of the London Summit 2018, John Murillo, Director of Dealing Division at B2Broker, one of the expected speakers at the event has said that 2018 has heralded a development of cryptocurrency brokerage from an illiquid market to liquid markets.

This evolution Murillo said has created a new kind of challenge. According to him:

“The biggest challenge is liquidity. Liquidity as such is a key component in trading operations. Most importantly, we have undertaken a proactive approach by aggregating liquidity using a BBO model, whereby every transaction gets order routed.

“The system creates and distributes liquidity within its own ecosystem. Part of the company’s mission remains to ensure that every market participant has access to organic liquidity and the ability to offset risk if and when necessary.”

Undoubtedly, 2018 has proven to be a year of hikes and dips for the crypto industry, occasioned by regulatory changes that has swiftly given rise to a new platform for brokers. Brokers have had to wriggle through the storm to find ways to trade and grow despite stiff competition and hefty regulations.

These challenges gave birth to the most important development which is more institutional participants joining the crypto space, according to Murillo. The Director of Dealing Division at B2Broker made the comments during an interview with Finance Magnate.

Murillo commented:

“Effectively, more participants turn into a deeper order book and tighter spreads. I see it as an evolution from illiquid markets to liquid markets. Regulation is evolving as well at a fast pace, so it’s only a matter of time until we see a full fledge asset class.”

These trying times has shed light on the similarities that exist between crypto and FX traders. In fact, they are indeed seeking high returns; they have a risk appetite much greater than the average investor. Nevertheless, one unique characteristic that I find nowadays is the involvement of the younger generation, Murillo added.

John Murillo is the Director of Dealing Division at B2B Broker. He’s been in the financial industry for the last 18+ years. He started his career as a trader, moved into retail brokerage and currently in the financial services dealing with institutional clients.