Cumberland Crypto Market Maker Unveils ‘Marea’, a Single-Dealer OTC Trading Platform
Traditionally, over the counter trading takes place through phone or video calls. However, Cumberland, a crypto market maker, is subverting this by introducing their new single-dealer platform called Marea on February 19, 2019. By using this platform, their institutional investors will be able to interact with the firm through a screen interface rather than the typical methods.
The idea behind this new development is to bring crypto trading up to speed. Screen interfaces have been used for at least the last decade on Wall Street for the trading of assets like stocks and if crypto is to compete in the larger market, it needs to keep up.
“This is a single-dealer platform and a way for our counterparties to interact with our markets, execute, trade and also view their trading history via a platform,”
Bobby Cho, Cumberland’s global head of trading, said,
“We looked at what other asset classes have done in the past, and that was an evolution from voice to chat to kind of on screens.”
Since it is newly-launched, the interface will begin by offering trading services for the top 10 most popular Cryptocurrencies such as Zcash and stellar lumens. Along with this, it will offer back-office reporting which will be provided by MG Stover.
“We are hoping to expand that into all the coins that we trade here, so upwards of about 40 coins, and then expand across the different settlement fiat currencies we also settle in – dollars, Swiss francs, euros, GBP and other currencies like that,”
Bobby Cho said.
“So it’s a little bit different from exchanges where you are set to what the exchange offers you from just an order book perspective. In the future, we hope this opens up our counterparties to trade any asset that we allow against either any fiat currency or any other crypto that we offer.”
Eventually, some new products will be added to the platform. For now, however, the platform offers back-office trade reporting and daily reconciliation of positions that can be downloaded as a spreadsheet.
To improve on the services available, some third-parties such as MG Stover were brought in.
“We take best practices from the private fund administration space and apply these to digital assets,” Matt Stover, CEO of MG Stover said. “We are really trying to institutionalize the digital asset space.”
Among these are timestamping of transactions and creating reliable records of them for future reference.