Crypto options need more principal market-makers – GS trader
Absence of risk warehousing market-makers holding back options development, says GS crypto trader
Institutional participation in cryptocurrency options trading is being hampered by a lack of principal market-makers, with capital-constrained high-frequency trading firms – unable to warehouse large-scale risk – dominating the sector, according to a senior Goldman Sachs trader.
“For a [crypto] options market to be functional, you need some participants who can warehouse big portions of that risk and are happy to run non-offsetting positions,” Andrei Kazantsev, head of crypto derivatives trading
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