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This is really interesting. Tension emerging over the 24/7 nature of crypto markets, and other markets where people like having a breather and getting some sleep.

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Frank Chaparro

@fintechfrank

May 31

Farmers fear crypto boss Sam Bankman-Fried will cost them sleep ft.com/content/295a66

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having a breather / sleeping does not make the world stop ... the risk still shifts around, just without ability to trade.

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tragedy f.k.a. parody f.k.a. poordart

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Has the absence of 24/7 markets in the past led to issues for farmers that need urgent addressing via a 24/7 market?

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im sure there are specific cases where price_Friday vs price_Monday has a major discontinuity which screws them over, but they seem to value more highly the flexibility in their margining

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there are other examples of this, like during the Greek austerity crisis where big moves happened with info that was processed during Saturday meetings i think

@FTX_Official

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@SBF_FTX

can bolster argument more by strongly highlighting to specific cases where would help

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Risk Management: Avoiding the Next “LME Nickel” Market Incident

In early March, a Chinese investor with a short position on nickel through derivatives suffered losses when the cost of nickel began to increase substantially. Along with other commodities, nickel...

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yea the LME nickel as one case study is good, just better to have even more examples, particularly around weekend market closures, where new system would have reduced systemic risk etc

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yup agreed

1:23 PM · May 31, 2022Twitter Web App

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I feel like traders will be hesitant to hold large positions on a system where it's only a subset of liquidity. Imagine eventually 80% of volume trades on CME, and 20% of volume on FTX... but FTX will liq you overnight based solely on their thinner book. A bit scary...

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you can trigger liquidations off an index

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