I believe having margin trading is the easiest way to get most of the market using nash exchange, I saw in another post that you need more licenses before you can do this, how long do you think it will take to get these licenses? Moving the mass of bitmex and bitfinex over to nash will truly be wonderful. I’m always worried bitmex will close one day.
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I guess thats all tied up with when/if we will be able to trade futures, as these are the only markets with high leverage and deep liquidity pools (3.03B on Bitmex in the last 24h alone and on big days Bitmex gets up to 100B). And if we could get an interface that is as good/better then Bitmexes. But I guess futures would always be custodial as someone will have to insure your contract (In traditional markets thats the clearing house of the Exchange). In the mean time you can try Kraken for leverage.
I understand that there’s immense complications in this process, my main point is that professional day traders use margin trading so to get the masses we will need this option. Take me for example, far from a profession trader but I won’t day trade on a platform without leverage, just my style. Yes, in the meantime i will use kraken or bitmex. Would like some thoughts/insight from the team if anyone has heard any updates share them too. Just a final point, I love nash and I won’t use it as frequently as bitmex because of this. I’m sure I’m far from alone.
Ethan wrote about margin trading and future possibilities here: https://medium.com/nashsocial/security-tokens-3fcd6b1a2b13
But the quote from article that addresses your question:
While receiving approval from the FMA is a major step forward for us, it is only the beginning of our engagement with regulators around the world. In the near term, we will be acquiring a Security Dealers License , which would allow us to issue other securities to the public and is a requirement for an Organized Trading Facility (OTF) license, which will allow us to support trading of NEX and other European securities. We are also working towards a Banking License , which would allow us to operate regulated bank accounts and store customer money, and opens the door to new products such as index funds and margin trading. In the United States, we are working towards Broker Dealer , ATS , and FINCEN licenses, which would allow us to trade US securities. Approval of the NEX token in the European Union also helps pave the way for our application to become a US security.
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I can’t imagine the effort/headache it takes to get through all of this paperwork.
Out of curiosity I tried to find out what the process is like to obtain said licenses. The industry is rapidly changing, and issuance of licenses is taking longer due to emerging technologies (ie Nash).
- Seychelles Securities Dealer License - 8-12 weeks application process
- OTF license by FMA - Lykke (another regulated exchange plateform) has been waiting for this for close to 16 months!
- Banking license in New York (BitLicense via NYSDFS): As of 12/11/2018 36 applications have been filed for the license, and 15 have been granted (5 applications denied). Since then two more have been granted for Robinhood and LibertyX.
- Broker Dealer - Once you meet all minimum criteria and submit application, SEC has 45 days to approve/deny
- Alternative Trading System (ATS/“MTF” for EU) - Coinbase acquired Venovate (which holds the ATS license), Bittrex partnered with Rialto Trading
There are too many to list, and each jurisdiction has it’s own set of rules. We’ll find out more during BETA launch, but for now I think it’s safe to assume the process can take up to 1.5 years. @fabwa and the compliance team is working hard to secure as many locations worldwide; just hope the funding doesn’t run out as this whole process is extremely capital intensive
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Thanks for looking into it, yes that does sound capital intensive, bitmex, kraken, and bitfinex have all of those?