CASPIAN: EVERYTHING ABOUT DIGITAL ASSET INVESTMENT AND MANAGEMENT IN A SINGLE USER INTERFACE.

in #cryptocurrency6 years ago (edited)

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Since the inception of cryptocurrencies and crypto assets, there has been a lot of difficulties in trading these currencies and assets. Users, crypto investors and fund managers have been experiencing some hard times in trade execution, position and risk management, compliance and functional reporting. However, trading cryptocurrencies on different trading platforms and multiple user interfaces can be difficult and cumbersome. So there are number of tools that should be available to users for the crypto space to achieve it's forecasted potentials. Some developed countries of the world today have been trying to work on decentralized financial systems to control corrupt practices and to achieve this, a good part of the populace should understand perfectly how the crypto space works. Though, there are some shortcomings involved in the quest to maximize the potentials of the crypto space which are highlighted below:

  • Irregular, Inconstant and Unpredictable Trade Execution: Trade execution is one of the biggest problems facing crypto investors in the crypto space today. Basically, digital asset exchanges in relation to trading volumes mostly arouses problems in terms of slippage and liquidity. The result of these slippages is that, trading costs becomes too high for market users.

  • Security Problems: Every crypto investor or fund manager understands the risk involved in acquiring and managing digital assets because most of these exchange platforms are prone to hacking which have led to theft in the last few years in the tune of 3-4 billion USD. Therefore, to minimize the issue of security breaches in protecting user digital assets and investments, good risk management strategies have to be put in place.

  • Lack of Good Reporting and Efficient Compliance: Good compliance procedures are necessary for any good crypto trading exercise and users are aware of that simple fact, but the problem is how to be familiar with these procedures. Another question that should be asked is that, are these procedures even easy to come by? This condition of things have put users in unbearable situations, thereby making compliance procedures done more on a manual scale to determine new pricing systems and other necessary metrics. Moreso, institutions that manage crypto assets are expected to keep track on audits regularly, for both internal and regulatory purposes. Keeping these records is a very important procedure in managing crypto assets but it is not available on most digital assets exchange platforms. Investors in institutions should provide regular reports to fellow investors and stakeholders on performance, risk management and future predictions in the crypto space.

But as a matter of fact, the aforementioned problems need to be attended to, which leads me to the purpose of this write-up; CASPIAN.

CASPIAN DEFINED

Caspian is a digital assets management solution which provides a single interface into all major exchange platforms. And from a technical point of view, Caspian is a complete mechanism of financial tools designed to facilitate an integration among multiple major exchange platforms in order to provide users with a common ground that enhances interaction within the crypto space as a whole. Caspian is a joint venture between 2 major cryptocurrency investment firms; Tora Trading Services Limited, a global leading cloud-based technology firm and Kinetic Trading Systems Limited, a leading blockchain and cryptocurrency investment firm.

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Caspian is designed to carry out 3 major functions which are it's benefits to the crypto space.

  • Order and Execution: This involves providing access to series of exchange platforms via a single interface. It is designed as a unifying component that creates good relationship and interaction among the various exchange platforms it supports. The simple logical meaning of the above statement is that users can access different available exchange platforms through a single interface. OEMS (Order and Execution Management System) provides a unified control panel that allows good communication among exchange platforms. With OEMS, users can set limits and alerts that helps to determine rise and fall in digital asset prices, slippages and actions to be taken based on market conditions; users can keep regular records of trading audits, both old and new for regulatory and internal purposes.

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  • Position and Risk Management: PMS (Position Management System) and RMS (Risk Management System) are the major components that carry out this functions. PMS creates an avenue to manage positions on different exchanges through a single platform. These systems give investors the opportunity to compare positions on different exchanges, invest and divest funds, monitor profit and loss trends across all exchanges. In asset management, these systems create an awareness ground where investors are constantly updated on the portfolios, shift assets and positions across various exchanges. Caspian gives room to make comparison between old and new trade patterns across multiple exchanges in one view. Position and risk management also involves position reconciliation, rebalancing and also allocation machines that allows trading through a single order on an exchange account even if the result of the trade is to be distributed to different funds, portfolios and other business units.

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  • Compliance and Reporting: Caspian possesses in-built compliance features that help users set various rules and limits in trading strategies. 3 limit types are consisted in compliance; warning limit, approval limit and absolute limit.
    These compliance limit types allow creation of rules to be adhered to by users in order to help assess risk rewards and ability to withstand variance.

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Reporting: Analysis of trading and exposure of positions is a very important part of managing investor funds and to do this efficiently, there must be quick and easy accessibility of reports. Through a unique web-based tool, caspian reporting system allow users to create, format and receive graphical reports on their on-going trading and positions in multiple formats, providing an easy view of present status of investments through various trading indicators.

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Let me give a user instance whereby a crypto asset and portfolio manager that works for a financial institution takes an idea of digital asset investment and management to his boss. However, with the problems facing the crypto market presently, his boss talks down the idea, pointing out that the time, effort and strategies necessary to run such business successfully may be unbearable. But with the introduction of caspian, a software that can do all the work automatically with less or no effort, the boss begins to consider setting aside funds to start the business and in some few months later, the firm is open to business on digital asset investment and management.


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