MAY 8, 2020
- Alpha5’s swaps order book will use implied orderbook logic, an industry first
- The upcoming launch will feature perpetual swaps, futures, and futures swaps
- Executive team is built with talent from top tier institutions, and backed by Polychain Capital
LONDON, UK -- Alpha5, a new cryptocurrency exchange and derivatives platform launching Summer 2020, will be the first cryptocurrency derivatives exchange to feature Implied orderbook technology. Founded by Vishal Shah, and surrounded by a team stacked with experience, Alpha5 bundles a measured study of various market conditions, and adds new functionality that goes beyond existing platforms.
"After reviewing the offerings from existing cryptocurrency derivatives exchanges, I felt as though there was room for a complementary set of instruments and features." says Shah. "For one, Implied orderbooks are key in enabling greater liquidity and product connectivity, but are not yet available in cryptocurrency markets. It’s a hole in the market that Alpha5 is going to fill."
With Implied Orderbook Logic, liquidity between instruments is combined to create a new dimension of trading, helping deepen the infrastructure of interest rate and futures markets. Implied-In orders combine prices of single futures legs to create swaps (or spreads) between them. Implied-Out orders go in reverse where orders placed in a swap also contribute to orders into the individual futures’ orderbooks. All of this is done without any additional liquidity or other requirements from the market. It means traders will not only be able to seamlessly roll their positions between different maturities, but also take advantage of price differentials (basis) when they hit extremes.
This implementation is a key cornerstone of the Alpha5 offering and is deeply embedded into the risk engine. As a result, traders are facilitated on a natural portfolio margin basis, with spreads reducing net delta exposures.
And this is reflected across its entire offering, with highlights including:
- Lower, responsible leverage and liquidation methods that benefit traders and limit market impact
- support for spreads between all linear products, allowing traders to express views between any two instruments
Alpha5 is anticipating launch in Summer 2020.