I should diagram this infra out for a BAM episode once I’m feeling better.
And, to tweak crypto’s nose a bit: it /would certainly be more efficient to replace a decentralized network with a central actor doing all functions.
And, to tweak crypto’s nose a bit: it /would certainly be more efficient to replace a decentralized network with a central actor doing all functions.
https://twitter.com/sbf_ftx/status/1490396578904948742
(It is not widely understood by retail investors that while a stock, for example, is *listed* on one stock exchange it *trades* on many separate physically distinct venues which they access simultaneously through their broker.)
Another fun example of a thing not well understood: decoupling brokerages and clearing functions is in investor interest but sometimes prevents some investors from doing something they want to do.
See the RobinHood/GameStop bruhaha.
See the RobinHood/GameStop bruhaha.
RobinHood had let’s call it incentive compatible reasons to turn their brokerage into a highly levered casino for a subset of their userbase, and their clearinghouse asked them to post billions of dollars of overnight capital.
There is a conspiracy theory that that was to protect hedge funds who were the other end of the trade (by preventing RH clients from increasing their positions), but it was actually to protect the clearing pool from billions of dollars of losses possible if a brokerage YOLOs risk
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