From 89e97fa9b6a5940bef7ff558ce603ab471647491 Mon Sep 17 00:00:00 2001 From: Rufus Pollock Date: Mon, 14 Nov 2022 14:52:33 +0100 Subject: [PATCH] [notes/market-fundamentalism][s]: move excalidraw re separation of market maker, broker etc into the repo. --- ...makers-broker-etc-2022-03-04.excalidraw.md | 367 ++++++++++++++++++ ...akers-broker-etc-2022-03-04.excalidraw.svg | 5 + notes/market-fundamentalism.md | 6 +- 3 files changed, 374 insertions(+), 4 deletions(-) create mode 100644 excalidraw/market-fundamentalism-separation-of-market-makers-broker-etc-2022-03-04.excalidraw.md create mode 100644 excalidraw/market-fundamentalism-separation-of-market-makers-broker-etc-2022-03-04.excalidraw.svg diff --git a/excalidraw/market-fundamentalism-separation-of-market-makers-broker-etc-2022-03-04.excalidraw.md b/excalidraw/market-fundamentalism-separation-of-market-makers-broker-etc-2022-03-04.excalidraw.md new file mode 100644 index 0000000..6dd8ef7 --- /dev/null +++ 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b/excalidraw/market-fundamentalism-separation-of-market-makers-broker-etc-2022-03-04.excalidraw.svg @@ -0,0 +1,5 @@ + + + + + Market MakerBrokerTraderClearing HouseAll 4 should be separated ...In many crypto exchanges theseare 1! \ No newline at end of file diff --git a/notes/market-fundamentalism.md b/notes/market-fundamentalism.md index fe3f53d..244423a 100644 --- a/notes/market-fundamentalism.md +++ b/notes/market-fundamentalism.md @@ -31,8 +31,6 @@ Rufus and Stephen 'steel man' the market fundamentalism position, exploring four Rufus and Stephen end their conversation with an analysis of the market fundamentalist position and the associated claims. - - ## What type of asset is a crypto token? How do we value it? Is there a comparable asset? * Zero-coupon perpetual [bond](../concepts/bond.md)? @@ -110,8 +108,8 @@ Rufus and Stephen end their conversation with an analysis of the market fundamen * Clearing house and in-house prop trading are in the same room * Exchanges have their own proprietary trading arm * Trading against their own clients -* Markets work best when we have abundant public information and minimize fraud and collusion in [price formation](../concepts/price-formation.md) - * https://excalidraw.com/#room=6319a3e121dbdb6edf28,0u9Ht45kupjqkHD8kCuUAQ +* Markets work best when we have abundant public information and minimize fraud and collusion in [price formation](../concepts/price-formation.md). There is a reason we separated different parts of brokers, market makers, clearing houses and traders. + ![[../excalidraw/market-fundamentalism-separation-of-market-makers-broker-etc-2022-03-04.excalidraw.svg]] * We have no idea how much [leverage](../concepts/leverage.md) is baked into the entire market, induced by products like unbaked [stablecoins](../concepts/stablecoin.md) which can seemingly produce limitless amounts of unsecured debt products on demand. * [Tether minted most USDT to just 2 firms — Alameda and Cumberland](https://protos.com/tether-minted-usdt-stablecoin-crypto-two-alameda-cumberland/) * What does that lead to?