CASPIAN: CRYPTOCURRENCY MANAGEMENT INSTITUTIONALIZATION
The world of crypto is filled with several market challenges. The digital asset space has exponentially grown since the emergence of Bitcoin nine years back. For this reason of growth, it is therefore reasonable to be sure of fragmentation of both exchanges and token.
One of the market challenges is the unreliable trade execution. Trade execution in the crypto market currently poses series of challenges to investors. The issues around slippage and liquidity which in turn leads to current market prices slipping significantly is as a result of the current fragmentation of digital assets exchanges at basic levels joined with low trading volumes. Also as a result of this slippage in current market prices, high trading costs for market participants is inevitable.
Owing to the fact that present digital assets exchanges began as small ventures and subsequently grew due to surging in the market, this crypto exchanges seem unable to handle bulk order volumes. As a result of this, most exchanges often suffer from latency in a high rate. Also, most exchanges lack adequate and proper customer support, which causes traders to become frustrated. In most cases, users face the problem of being locked out of exchanges due to technical failures and discrepancies.
Lack of security is also a major issue in the market of cryptos. Buying and selling of digital assets is highly entangled with security risks and traders are well aware of this fact. Digital assets exchanging medium are prone to being invaded by hackers. The main problem now is that most exchanges lack many of the protections traders and investors are so in need of. Some of these protections users require include risk management capabilities and digital data safety. A very important element of trading in any asset class is risk management. Risk management takes on additional dimensions for the digital asset space. These include the counterparty risk which is present when carrying out transactions on various individual exchanges. Traders on their own part must ensure to make contigencies to cater for the likelihood of exchanges falling and automatically taking their funds with it.
The crypto market is also faced with the inability of compliance and reporting. Traders and investors as well as fund managers duely recognize and understand the essence of strong compliance and reporting procedures. In the world of cryptos, there is no exemption to this, but the fragmentation among the many exchanges make achieving strong compliance procedures difficult. This in turn makes market participants face difficult circumstances in keeping extensive audit records.
The chance to provide market participants with the required tools to address the problems being faced currently in the crypto market is very clear, and as the digital asset space keeps growing and participants keep getting exposure, the demand for problem solving tools will increase and grow stronger.
THE EMERGENCE OF CASPIAN: THE END TO THE CRYPTO MARKET PROBLEMS
BACKGROUND OF CASPIAN
Caspian is a joint venture between two forms, Tora and Kenetic, each of these ventures have a track record of successful asset management and cryptocurrency investing. Tora is a leading supplier of asset management technology. The company is ideally placed to project Caspian which will be the first large-scale institutional infrastructure specifically channelled to managing traditional assets. Caspian currently connects to over 10 major digital exchanges and it plans to include up to forty additional trading venues by Q3 2018.
Caspian is an online system created to eradicate the many problems traders/investors in crypto are facing with the use of a user-friendly interface. This is made possible through the provision of sophisticated connectivity and interrelationship between the several digital assets exchanges. Caspian is expected to bring more growth to digital assets participation on the part of investors. The features of Caspian include position management, reporting capabilities and professional-grade execution. It also equips market participants with a comprehensive Risk Management System (RMS), Position Management System (PMS) and OEMS plus an effective customer support. One of the purposes of Caspian is to support the purchase of digital assets instruments to a large number of users while aiding in the bringing of volume, dynamism and liquidity to the crypto market.
Caspian provides everything you need to manage your portfolios. It is a complete asset of management solution that covers full life cycle of trade.
WHAT CASPIAN IS OFFERING
The key benefits of Caspian platform is grouped into three categories namely:
- Position Management
(A) POSITION MANAGEMENT AND RISK MANAGEMENT (PMS & RMS):
The PMS & RMS of Caspian together enable users to oversee and monitor their positions and exposures and also maintain a comprehensive detailed records of each. The PMS and RMS record and track every piece of data in perpetuity which in turn allow investors to view all their positions and data at any time. PMS and RMS stays downstream to receive all execution and order information from the OEMS.
RMS AND PMS possess the following features :
Reconciliation: Caspian's detailed recording-keeping functions make it easy to carry out reconciliations. Reconciliation is usually required when multiple counterparties are involved to ensure that all transactions are carried out as agreed.
Rebalancing: Caspian also helps in rebalancing. Rebalancing can help in generating orders when funds drift from target.
Allocation Engine : The allocation engine permits trading via a single exchange account and single order even if the trade is intended to be channelled to various funds, strategies or portfolios. The allocation engine helps the trade to achieve the best execution order.
Caspian provides a unified control center optimized for first trading, which will serve as the main hub for portfolio managers and traders. The OEMS single interface provides for the following:
- Ability to view and manage margin across multiple exchanges.
- Access to selected major digital asset exchanges through a single interface.
- Ability to view prices
- Ability to send, stage and amend orders in multiple ways.
- Report generation auditioning etc.
(C) COMPLIANCE AND REPORTING:
Caspian have both the reporting engine and compliance engine which helps in reporting.
Compliance Engine: This system is based on Tora's proprietary technology which allows Caspian to set new limits and compliance rules efficiently. The compliance engine makes provision for multiple levels of functionality.
Reporting Engine: Caspian will feature robust reporting capabilities which will comprise of simple "flat file" reports such as audit reports and compliance reports.
Caspian token (CSP) is an ERC- 20 complaint token which will be issued on the Etherum block chain. The token has been designed to serve several principal objectives. The token is intended to create a rich , ecosystem where platform users will become community members with an active interest in the platform. This will be achieved by giving the token user-to-platform utility (governance and discount) and user-to-user/developer utility.
The token is not required to have access to the platform but the token can be used to enhance user's experience of it through an intentional variety of means and to get a variety of benefits.
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