Future Work

CVEX Auctions: We believe that as this market develops a very solid on-chain mechanism is required to provide the market with stable pricing for settlement. A longer term ambition after launch is to develop complete on-chain auction mechanisms to allow spot trading in a window to determine the final settlement price of an asset.

Physical Settlement: We are interested in the capability of the system to allow the physical delivery of an asset, such as a safe-keeping receipt, warehouse receipt or digitisation of a similar asset, cash settlement can be used as a backup but we are interested in exploring this area.

Default fund:

  • A concept that we have not fully understood is producing a yield in the default fund from the transaction flow (after significant volume is achieved), this could be used to attract extra funds, where the size of the fund is a function of the size of the portfolios.

  • It is considered that a platform, certainly a successful platform, may have left over assets that could be contributed to the default fund as "skin in the game", to ensure the correct behaviour of the platform. Making the platform's asset exposed to the success of the clearing mechanism, not just the trading mechanism is preferable, but the right solution has not yet been found.

  • The Platform should set the Default Fund Utilisation Parameters, but a mechanism to prevent setting them inappropriately has yet to be found.

Interest Rates and Forward curves: We have not added a calculation here for the interest rate for the cost of carry, but this can be determined from a number of markets and discounted back. There are questions on the discount curve, but it is viewed that this can be satisfied fairly straightforwardly, though as a swap market would be useful.

Batch Orders: Options traders need to be able to submit batch updates for whole series in one go, this has yet to be documented but is required by Autumn 2024.

Contingent Orders: Orders where secondary orders are triggered if the first is filled, such as a futures hedge for an options order, make sense to be built to prevent margin getting too high.

Front End SDKs / FIX layer wrappers: We will look to see what we need to provide to Front End providers to enable their easier connection, this will happen during Q1.

Prime Brokers: We would really like to bring in a sponsored access layer to allow control over trading accounts.

Repo Window: There ought to be a parallel pool that allows the repo of assets to cover the margin with other instruments that are connected in a smart way that doesn't impact the margin.

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