Ex-Morgan Stanley execs launch crypto derivatives exchange Phemex, claiming it to be ‘on par with Nasdaq’
Eight former core developers from one of Wall Street's top investment banks, Morgan Stanley, have launched a cryptocurrency derivatives exchange with big claims.
Named Phemex (references "the Greek Goddess of fame and good repute Pheme"), the
exchange claims to be 10 times faster as compared to other cryptocurrency trading platforms with the ability to manage 300,000 transactions per second. It also claims to have an order entry and response time of “less than 1 millisecond.”
Available for both retail and institutional clients, Singapore-based Phemex offers several cryptocurrency perpetual contracts, tied to bitcoin (BTC), ether (ETH), XRP, litecoin (LTC) and EOS, with up to 100 times leverage.
“These trading metrics are on par with those experienced at some big investment banks like Morgan Stanley. Our matching engine, trading engine, and risk engine were six months in the making, putting the platform technically on par with Nasdaq,” said Jack Tao, who spent 11 years at Morgan Stanley as the global development leader of the bank’s electronic trading benchmark execution strategies, before co-founding Phemex.
Tao brought in seven other executives as well from Morgan Stanley to join his venture.
But why a shift to
crypto from traditional finance? Mostly for two reasons, Tao told The Block. “First, we believe that the derivatives market has great potential for growth, this belief was supported by our research during the initial stages of Phemex. Second, coming from traditional finance, where technical standards are considerably higher, we see plenty of room for improvement.”
Tao acknowledged that the crypto derivatives market is “crowded,” but said “ongoing news of technical and security issues regarding major exchanges are also very common. This tells us that our expertise can bring value to the industry.”
Phemex is built using C++ and React programming languages, while some other crypto trading platforms are engineered in Kdb+, a column-based relational time-series database, said Phemex, adding: “While extremely efficient in calculating orders, costs and risks, Kdb+ presents exchanges with reliability issues due to scalability and transaction throughput limitations.”
In July, the world’s largest crypto wallet provider
Blockchain.com also launched a crypto exchange called The PIT, claiming to be one of the fastest in the world. But is speed really important? Insiders told The Block at the time that speed isn't a top priority for most investors in the market.
Phemex also offers a “cold” wallet, which assigns an independent deposit address to each user, per the announcement.