The crypto market, since Bitcoin’s launch over a decade ago, has evolved—mostly characterized by the emergence of new trends and paradigm shifts, especially in terms of regulation. These changes have altered how digital assets are governed and exchanged, and beyond regulatory compliance, this transformation also affects how liquidity and risk are provided and managed, respectively. United States regulators are moving forward with clearer and broader regulatory frameworks for crypto trading.
Industry participants have shown maturity, negotiating with relevant authorities to create operational yet viable frameworks. CLS Global is one such player. The top market-making company recently reached a settlement agreement with US authorities on all things regulatory-related. Through this, CLS Global reaffirms its dedication to utmost regulatory compliance by engaging with the Securities & Exchange Commission (SEC) and other authorities. It doesn’t end there; the market-making company is implementing strict measures and enhancing its service locations to comply with applicable regulations.
Traditional markets are not left out. They are experiencing a significant change in models, no thanks to the competition with DeFi protocols for centralized trading avenues. Liquidity providers in the hybrid market face similar challenges; the existence of new trading venues combining DeFi and CeFi capabilities and the growing demand for cross-venue liquidity aggregation.
Demand for Infrastructure that Closely Resembles Traditional Markets
While Bitcoin’s price movements have garnered attention globally, the underlying and, most times, diminutive changes in how trades are executed are more important. Per an analysis report, there’s a demand for infrastructure that resembles traditional markets and their services, some of which include sophisticated algorithm execution, prime brokerage services, and credit networks.
Despite the exponential growth of the industry, technical challenges such as the aforementioned remain. Speaking on this, CLS Global’s CEO, Filipp V, revealed that the next phase of the industry will depend mainly on bridging the gap between traditional finance and decentralized systems.
The industry’s next phase will be defined by how effectively we bridge the gap between traditional finance and decentralized systems. Market makers capable of navigating both landscapes while upholding strong compliance standards will play a key role in shaping the future of digital asset trading,
the CEO states.
Navigating Financial and Technical Complexities
The dynamic nature of the crypto landscape requires a fundamental rethink of existing market-making strategies as well as the incorporation of new features. Some of these include cross-venue inventory management, dynamic risk pricing across multiple blockchains, integration of on-chain and off-chain liquidity sources, and real-time adaptation to settlement finality conditions. As the United States regulatory parameters continue to cover emerging trends and markets, new changes are imminent, meaning that market makers must adapt.
Market-making companies will need to evolve and leverage varying forms of automated market-making strategies that merge traditional DeFi features, settlement mechanisms, and advanced cross-chain liquidity provision protocols. CLS Global, as one of the leading market making firms, has demonstrated its commitment to regulatory compliance while providing comprehensive trading solutions and liquidity services to institutional clients globally.
CLS Global’s settlement agreement with US authorities and the ongoing development of revolutionary trading strategies puts it at the driver’s seat of this new era of market-making. The company is merging powerful trading algorithms and an extensive liquidity network to deliver CEX solutions. The future of the digital assets market will be shaped by companies that successfully navigate both the technical and financial complexities of the crypto landscape, CLS Global aims to be one.
Source: https://coinpedia.org/information/how-cls-global-navigates-the-complex-us-crypto-landscape/