Atlas ATS Archives - Logicoins

NOT A REHASH -- Much more details : Long on Bitcoin: Perseus and Atlas ATS Burnish Digital Currency, Target Market-Makers

Behind Paywall:
Despite recent headline-splashing travails, Bitcoin is steadily gaining reception among the world's largest market-makers and funds like Fort Hill Capital. Atlas, an alternative trading system, and network services provider Perseus are meeting that demand via the ATS's co-locations in New York, Hong Kong, and Singapore. Perseus’ Digital Currency Initiative (DCI) was recently established to implement standards by which Bitcoin (BTC) should be supplied to the trading community. Already with $2 million revenue a little over a month after official launch, DCI is now officially online with Atlas, an ATS using a matching engine across traditional asset classes that works at a speed of 30 millionths of a second (30µs), and which has been working on Bitcoin since April of last year.
Atlas CEO Shawn Sloves says the partnership has come as buy sides are beginning to respond in earnest to demands—both internal and client-driven—to capture Bitcoin’s value and exploit its existing microstructure, known as “walleting.”
"There are probably 40 or 50 firms that have created Bitcoin funds for themselves or clients already," he tells Buy-Side Technology, pointing out Duxbury, Mass.-based Fort Hill Capital Management as one example where fund managers have invested their own money. "The Bitcoin index's value multiplied 56 times last year, the highest increase of any asset class—ever. They want the alpha, while for the traditional market-maker shops in equities and options, it's harder to make money today because of the regional nature of exchanges and the tremendous arbitrage that implies."
Alec Petro, founder and managing partner at Fort Hill, which owns interests across a family of funds and mutual fund companies managing $4 billion, says it's all part of a learning curve. "Obviously, when we first entered the Bitcoin market as an investor, trader, then market maker, we understood well the speculative nature of Bitcoin as an asset. It's very hard to be a market participant without a reasonable stake in Bitcoin, and owning and trading BTC across many exchanges. It's risky, but we believe the risk-reward has been and continues to be attractive, and in the long term has the potential to have huge rewards to larger participants as the market evolves."
First Wave
Also among that first wave of Bitcoin pioneers, Sloves says, are prop shops, some of which will even have programmers writing Bitcoin applications in-house. "At the Securities Technology Analysis Center (STAC) Research conference last year in Chicago, we covered BTC and I was shocked to hear Miguel Rivera, CTO at Sun Trading, and guys from Tradebot Systems were already familiar and trading in Bitcoin in one shape or another," he says. "They're really looking at how to get in, how to do more of it, and going that direction really fast."
So, it's a great time to build a venue; details are the issue. As part of the project, Atlas has built an entirely "cold-storage" omnibus account structure, ensuring that only daily settlements are online at a given time, and uses multi-tiered architecture that is resilient to hackers. Accounting for Bitcoin's fractional shares options, covering its 180 different varieties, and designing a global order book that settles in real-time have all proved challenges too, according to Sloves, as Atlas has added the digital currency to its other markets. "Bitcoin trades much like foreign exchange (FX) or commodities, in that its value is in storage. Trading in Bitcoin US Dollar or Euro acts a lot like FX pairs," he says. "The other piece for Atlas, in supporting traditional options, futures, and FX, is that there will be a real need to leg-in or out of orders, or enabling a Bitcoin-fiat conversion, for example, so we have integration with 20 ECNs and banks, and soon we'll be launching BTC derivative products like options and futures that help with hedging Bitcoin's price."
Achieving Stability
The focus, then, is on two different types of market participants: market-makers accumulating trading positions throughout the day on one hand, and investors like Fortress Investment Group, who were in early consultations with Atlas, on the other.
"With options, market-makers can create a market-neutral position; for example, if they're long on Bitcoin, they can run calls or put positions to hedge that exposure," Sloves says. "Likewise for a firm like Fortress, which will run a program over the course of 24 hours, see where they end up and then leg-in another contract to deal with leftover currency risk. Having those tools available will help Bitcoin's long-term adoption." Fort Hill's Petro—who previously headed up BNP Paribas' global FX derivatives business—says a venue like Atlas can potentially provide more liquidity and transparency in Bitcoin by aggregating multiple exchanges and enabling larger market players to take larger positions quicker with less market turbulence, thus reducing overall BTC volatility. "Hopefully as these markets evolve, and even get regulated, which we are hoping for, this increase in liquidity will reduce volatility—although it has gone down a lot already over the past six months, even though it doesn't seem like it—to a place where new market participants will feel comfortable to enter. We believe there will be a lot of demand for Bitcoin and BTC derivatives and options as the price continues to stabilize. We are in that process now, and we think it will continue as the market sheds its bad actors. With each exit of these bad actors, the market stabilizes more and more. BTC derivatives also allow market participants to hedge positions when they want; this will add more stability to the markets as well."
'Die Hard'
All of that can only happen, though, if underlying IT is made to feel safe. Counterparty identification, for know-your-customer (KYC) and anti-money laundering (AML) requirements, has risen in priority as criminal elements have presented themselves in the Bitcoin conversation. Protecting cold storage has, too.
Original Bitcoin exchanges—including the now-infamous defunct Mt. Gox—were designed with a single "hot wallet" that transfers all Bitcoins to cold storage; the “keys” to the cold storage could be compromised and stolen if the hot wallet were penetrated. Atlas went out of its way to design its architecture such that those keys can be dispersed across more than a thousand separate wallets.
Then there was connectivity, for which Perseus' DCI and 60 Hudson Street datacenter proved an ideal match. Jock Percy, Perseus CEO, points out that Atlas will be run off an entirely private network and a physical connection will be required to tap into the venue—all considerations that regulators have been keen to observe, even if oversight responsibility for the currency remains to be settled.
“We wanted to be really open about how we're doing this, providing not just a sense, but a real look into what we want to provide, and how it's delivered,” Percy says. “It could be done, but to disrupt our operations as built, you would have to pull off a Die-Hard-style heist. The reason why we need to keep dialogue open is that we really want this to succeed. Of course, there are profit opportunities for us in it, but however clichéd it might sound, there's also the chance for this to eventually change the way the world transacts." The Bottom Line Atlas ATS and Perseus have partnered on a full-fledged Bitcoin offering for capital markets trading, including proprietary cold-storage and walleting integration and the eventual integration of derivatives based around the currency.
The partnership is driven by increased demand from both electronic traders and institutional investors looking to derive alpha and benefit from increased liquidity demands not already met by existing Bitcoin exchange venues.
Original Link: http://www.waterstechnology.com/buy-side-technology/analysis/2333353/perseus-and-atlas-ats-burnish-bitcoin-trading-target-buy-side
submitted by bitcoinbravo to BitcoinMarkets [link] [comments]

NOT A REHASH -- Much more details : Long on Bitcoin: Perseus and Atlas ATS Burnish Digital Currency, Target Market-Makers

Behind Paywall:
Despite recent headline-splashing travails, Bitcoin is steadily gaining reception among the world's largest market-makers and funds like Fort Hill Capital. Atlas, an alternative trading system, and network services provider Perseus are meeting that demand via the ATS's co-locations in New York, Hong Kong, and Singapore.
Perseus’ Digital Currency Initiative (DCI) was recently established to implement standards by which Bitcoin (BTC) should be supplied to the trading community. Already with $2 million revenue a little over a month after official launch, DCI is now officially online with Atlas, an ATS using a matching engine across traditional asset classes that works at a speed of 30 millionths of a second (30µs), and which has been working on Bitcoin since April of last year.
Atlas CEO Shawn Sloves says the partnership has come as buy sides are beginning to respond in earnest to demands—both internal and client-driven—to capture Bitcoin’s value and exploit its existing microstructure, known as “walleting.”
"There are probably 40 or 50 firms that have created Bitcoin funds for themselves or clients already," he tells Buy-Side Technology, pointing out Duxbury, Mass.-based Fort Hill Capital Management as one example where fund managers have invested their own money. "The Bitcoin index's value multiplied 56 times last year, the highest increase of any asset class—ever. They want the alpha, while for the traditional market-maker shops in equities and options, it's harder to make money today because of the regional nature of exchanges and the tremendous arbitrage that implies."
Alec Petro, founder and managing partner at Fort Hill, which owns interests across a family of funds and mutual fund companies managing $4 billion, says it's all part of a learning curve.
"Obviously, when we first entered the Bitcoin market as an investor, trader, then market maker, we understood well the speculative nature of Bitcoin as an asset. It's very hard to be a market participant without a reasonable stake in Bitcoin, and owning and trading BTC across many exchanges. It's risky, but we believe the risk-reward has been and continues to be attractive, and in the long term has the potential to have huge rewards to larger participants as the market evolves."
First Wave
Also among that first wave of Bitcoin pioneers, Sloves says, are prop shops, some of which will even have programmers writing Bitcoin applications in-house. "At the Securities Technology Analysis Center (STAC) Research conference last year in Chicago, we covered BTC and I was shocked to hear Miguel Rivera, CTO at Sun Trading, and guys from Tradebot Systems were already familiar and trading in Bitcoin in one shape or another," he says. "They're really looking at how to get in, how to do more of it, and going that direction really fast."
So, it's a great time to build a venue; details are the issue. As part of the project, Atlas has built an entirely "cold-storage" omnibus account structure, ensuring that only daily settlements are online at a given time, and uses multi-tiered architecture that is resilient to hackers. Accounting for Bitcoin's fractional shares options, covering its 180 different varieties, and designing a global order book that settles in real-time have all proved challenges too, according to Sloves, as Atlas has added the digital currency to its other markets.
"Bitcoin trades much like foreign exchange (FX) or commodities, in that its value is in storage. Trading in Bitcoin US Dollar or Euro acts a lot like FX pairs," he says. "The other piece for Atlas, in supporting traditional options, futures, and FX, is that there will be a real need to leg-in or out of orders, or enabling a Bitcoin-fiat conversion, for example, so we have integration with 20 ECNs and banks, and soon we'll be launching BTC derivative products like options and futures that help with hedging Bitcoin's price."
Achieving Stability
The focus, then, is on two different types of market participants: market-makers accumulating trading positions throughout the day on one hand, and investors like Fortress Investment Group, who were in early consultations with Atlas, on the other.
"With options, market-makers can create a market-neutral position; for example, if they're long on Bitcoin, they can run calls or put positions to hedge that exposure," Sloves says. "Likewise for a firm like Fortress, which will run a program over the course of 24 hours, see where they end up and then leg-in another contract to deal with leftover currency risk. Having those tools available will help Bitcoin's long-term adoption." Fort Hill's Petro—who previously headed up BNP Paribas' global FX derivatives business—says a venue like Atlas can potentially provide more liquidity and transparency in Bitcoin by aggregating multiple exchanges and enabling larger market players to take larger positions quicker with less market turbulence, thus reducing overall BTC volatility. "Hopefully as these markets evolve, and even get regulated, which we are hoping for, this increase in liquidity will reduce volatility—although it has gone down a lot already over the past six months, even though it doesn't seem like it—to a place where new market participants will feel comfortable to enter. We believe there will be a lot of demand for Bitcoin and BTC derivatives and options as the price continues to stabilize. We are in that process now, and we think it will continue as the market sheds its bad actors. With each exit of these bad actors, the market stabilizes more and more. BTC derivatives also allow market participants to hedge positions when they want; this will add more stability to the markets as well."
'Die Hard'
All of that can only happen, though, if underlying IT is made to feel safe. Counterparty identification, for know-your-customer (KYC) and anti-money laundering (AML) requirements, has risen in priority as criminal elements have presented themselves in the Bitcoin conversation. Protecting cold storage has, too.
Original Bitcoin exchanges—including the now-infamous defunct Mt. Gox—were designed with a single "hot wallet" that transfers all Bitcoins to cold storage; the “keys” to the cold storage could be compromised and stolen if the hot wallet were penetrated. Atlas went out of its way to design its architecture such that those keys can be dispersed across more than a thousand separate wallets.
Then there was connectivity, for which Perseus' DCI and 60 Hudson Street datacenter proved an ideal match. Jock Percy, Perseus CEO, points out that Atlas will be run off an entirely private network and a physical connection will be required to tap into the venue—all considerations that regulators have been keen to observe, even if oversight responsibility for the currency remains to be settled.
“We wanted to be really open about how we're doing this, providing not just a sense, but a real look into what we want to provide, and how it's delivered,” Percy says. “It could be done, but to disrupt our operations as built, you would have to pull off a Die-Hard-style heist. The reason why we need to keep dialogue open is that we really want this to succeed. Of course, there are profit opportunities for us in it, but however clichéd it might sound, there's also the chance for this to eventually change the way the world transacts." The Bottom Line Atlas ATS and Perseus have partnered on a full-fledged Bitcoin offering for capital markets trading, including proprietary cold-storage and walleting integration and the eventual integration of derivatives based around the currency.
The partnership is driven by increased demand from both electronic traders and institutional investors looking to derive alpha and benefit from increased liquidity demands not already met by existing Bitcoin exchange venues.
Original Link: http://www.waterstechnology.com/buy-side-technology/analysis/2333353/perseus-and-atlas-ats-burnish-bitcoin-trading-target-buy-side
submitted by bitcoinbravo to Bitcoin [link] [comments]

Shawn Sloves of Atlas ATS @ CoinSummit 6/24/14 - ZipZap is back, Robocoin brings Bitcoin to Italy ... 3/28/14 - Stripe adds bitcoin, Banks & Bitcoins report ... Start-up Showcase Part 1 - Coinsumm.it CoinSummit - YouTube

Meet Shawn Sloves CEO and Co-Founder of Velocity Ledger, hear his story, how he got into blockchain, how Velocity Ledger and their crypto platform plans to help Wall Street and Main Street. #WIN $100 BCH 🛑🛑🛑💰💰ATTENTION💰💰🛑🛑🛑 YOU MUST Follow these steps to be entered to WIN: To WIN you 🛑🛑🛑MUST🛑🛑🛑 👍LIKE👍 SUBSCRIBE 🗣COMMENT🗣POST PUBLIC ... Sprechen mit CoinDesk, Shawn Sloves, CEO des globalen Bitcoin-Austauschnetzes Atlas ATS bot eine andere Aufnahme an. Er schlug vor, dass die Gesamt-Sättigung im Bitcoin-Börsenmarkt ein wichtiger Faktor ist. New York Regulierung, unabhängig von der Form, in der es geht, wird ein Segen für die Industrie sein, fügte er hinzu. Sloves erklärte: "Von dem, was ich gesehen habe, gibt es einen ... Meet Shawn Sloves CEO and Co-Founder of Velocity Ledger, hear his story, how he got into blockchain, how Velocity Ledger and their crypto platform plans to help Wall Street and Main Street. #WIN $100 BCH 🛑🛑🛑💰💰ATTENTION💰💰🛑🛑🛑 YOU MUST Follow these steps to be entered to WIN: To WIN you 🛑🛑🛑MUST🛑🛑🛑 ... Shawn Sloves is the Chief Executive Officer and co-founder of Atlas ATS and Fundamental Interactions. Prior to joining the firm, Shawn was co-founder and Head of Product & Strategy at Mantara Inc ... Atlas ATS [1] CEO Shawn Sloves framed the service as one that helps these market segments better utilize bitcoin as a payment network, while guarding against short-term losses that could occur due to bitcoin’s sometimes rapid fluctuations in value against government-backed alternatives. Sloves said: “Merchants and payment processors aren’t going to accept a currency if they have to ...

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Shawn Sloves of Atlas ATS @ CoinSummit

Skip navigation Learn more at Coinsumm.it Nadav Ivgi, Bitrated Shawn Sloves, Atlas ATS Flavien Charlon , Coinprism Jacob Hanson, Crowedcurity Bob Frimet, Interwallet Connie Galippi, BitGive (Pamir to intro BitGive) Money & Tech's Jered Kenna interviews Shawn Sloves and discusses his exchange, Atlas ATS, including what they're working on now and what's to come in the near future. Watch this interview, and ... Close. This video is unavailable. Meet Shawn Sloves CEO and Co-Founder of Velocity Ledger, hear his story, how he got into blockchain, how Velocity Ledger and their crypto platform plans to h...

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