Derivatives Decoded

EP 5 — MNNC Group’s Shiliang Tang on Why Digital Asset Trading Firms Need Strategic Consolidation

"Build or buy?” In crypto, that question just got a lot more complicated, explains Shiliang Tang, Advisor to FalconX and Founder & General Partner at MNNC Group, in this episode of Derivatives Decoded. Shiliang tells Ash about his journey building and selling two major trading operations in the volatile digital asset space, bringing a battle-tested perspective on institutional trading few can match. 
From his early days in electronic volatility trading at traditional firms to spotting the massive arbitrage opportunities in 2017's crypto markets, Shiliang also shares how he navigated multiple market cycles, built sophisticated voltrading operations during infrastructure gaps, and ultimately positioned Arbelos for a strategic acquisition in an increasingly competitive landscape. His insights on the ongoing consolidation wave, the tightening of alpha in derivatives, and why prime brokerage remains critically underdeveloped provide institutional listeners with actionable intelligence on market structure evolution.
Topics discussed:
Why fragmentation is unsustainable in crypto markets and how the space is following traditional finance's path toward fewer, more comprehensive service providers offering multiple business lines.
How Arbelos Markets identified Falcon X as an ideal acquisition partner based on existing infrastructure, distribution capabilities, and complementary strengths in handling derivatives operations.
A strategic approach to identifying core differentiation areas (pricing models, research, client service) to keep in-house while outsourcing commoditized functions (back office, execution, data collection).
How specialized service providers like Kemet have dramatically reduced the 0-to-1 timeline for launching trading operations compared to 2017-2020, while simultaneously increasing competition.
Why liquid markets now offer better risk-adjusted returns than venture investments, with public tokens trading at valuations comparable to early-stage private funding rounds.
Why true institutional prime brokerage remains elusive in crypto due to credit limitations, with most services now being fully collateralized following 2022's collapses.
How traditional market forces and monetary policy now directly impact crypto markets, suggesting the four-year cycle pattern will fade as institutional participation increases.
Projections for continued market weakness through Q3-Q4 as the administration engineers a "soft recession landing" before potential Fed rate cuts could trigger a strong crypto market recovery.
Listen to more episodes: 
Apple 
Spotify 
YouTube
Website

EP 4 — Arca’s Jeff Dorman on Why Bank Custody Services Could Transform Digital Assets

From redefining prime brokerage models to navigating the complexities of T+0 settlement, this episode of Derivatives Decoded features Jeff Dorman, Chief Investment Officer at Arca, delivering an institutional playbook for the future of digital asset market structure. Drawing from his experience as a credit trader during the 2008 financial crisis, Jeff gives Ash a compelling analysis of why traditional prime brokerage and risk management frameworks need fundamental rethinking for digital assets, not just adaptation. 
His firm's survival through multiple market cycles while managing over $500M in assets demonstrates the value of rigorous counterparty risk management and fundamental analysis in an industry that has seen numerous institutional failures. As one of the few firms applying traditional valuation frameworks to digital assets, Arca's approach to categorizing and analyzing digital assets offers unique insights for institutional investors navigating this rapidly evolving landscape.
Topics discussed:
Advanced analysis of why T+0 settlement fundamentally breaks traditional prime brokerage models, requiring institutions to completely rethink capital efficiency and counterparty risk management rather than simply adapting existing frameworks.
Detailed examination of the infrastructure gap in digital asset markets: while deceptively similar to traditional finance on the surface, key differences in settlement, custody, and collateral management create unique challenges for institutional capital deployment.
Quantitative analysis of DEX market share growth (1% to 15-20%) coupled with a sophisticated examination of why institutional capital remains sidelined despite clear technological advantages.
Framework for institutional valuation of digital assets through multi-factor analysis: quantifiable financial value, measurable utility value, and correlative social value.
Comparative analysis of execution venue selection, examining how capital efficiency and collateral management requirements drive institutional traders to optimize across IBIT options, Deribit, and other venues based on specific portfolio constraints.
Technical examination of operational infrastructure evolution, from basic portfolio tracking to institutional-grade systems, highlighting remaining gaps in cross-venue position management and risk analytics.
Detailed analysis of how the SAB 121 repeal and potential bank custody services could reshape institutional market structure, with specific focus on implications for trading operations and risk management.

EP 3 — Galaxy Digital’s Jason Urban on Building Trust and Infrastructure in Digital Asset Derivatives

In this episode of Derivatives Decoded, Ash speaks with Jason Urban, Global Head of Trading at Galaxy Digital, who brings his expansive insights on the evolving landscape of crypto trading and the burgeoning options market. 
 
He discusses the importance of regulation in fostering a secure environment for digital assets, emphasizing the need for clear guidelines that encourage innovation. Jason also highlights the role of institutional interest in driving growth within the sector and the significance of building trust through robust infrastructure. 
 
Topics discussed:
 
The impact of regulatory changes on the crypto industry and how they can foster innovation while ensuring security for investors and institutions alike.
The growing importance of options trading in the crypto market and its potential to attract new institutional investments into the digital asset ecosystem.
The role of trust in the crypto space and how Galaxy Digital aims to build strong relationships with clients through transparent practices.
The significance of infrastructure in supporting digital asset trading and how Galaxy Digital is developing solutions to enhance trading experiences.
Insights into the competitive landscape of crypto trading and how Galaxy Digital differentiates itself from other players in the market.
The challenges of cross-margining in digital assets and how Galaxy Digital is working to implement effective solutions for institutional clients.
The importance of collaboration between regulators and industry players to create a balanced framework that supports innovation while protecting investors. 
 

EP 2 — Abra’s Robert Wallden on Cross-Margining Strategies for Enhanced Capital Efficiency

In this episode of Derivatives Decoded, Ash speaks with Robert Wallden, Head of Trading at Abra. Robert shares his insights on the dynamic world of crypto trading and derivatives, discussing the critical importance of navigating market sentiment and how traders can adapt quickly to volatility. 
 
Robert also explores cross-margining strategies, highlighting their role in optimizing capital efficiency across various trading strategies. Robert emphasizes the necessity of building internal tools to manage risks effectively in the digital asset ecosystem. Additionally, he describes how traditional trading principles are being reimagined for the crypto landscape and what it means for the future of trading. 
 
Topics discussed:
 
The importance of navigating market sentiment and quickly adapting trading strategies in response to volatility within the crypto landscape.
How cross-margining strategies can optimize capital efficiency across various trading portfolios, enhancing overall performance in both crypto and traditional finance.
The role of internal tools in managing risks effectively, allowing traders to gain better insights and control over their trading operations.
The evolution of trading practices from traditional finance to the digital asset ecosystem, highlighting key differences and similarities.
The significance of building strong relationships with clients and understanding their needs to provide effective trading and liquidity solutions.
The challenges of raising capital as a first-time founder and the strategies employed to navigate early-stage funding conversations.
How the integration of technology and data analytics is transforming trading strategies and decision-making processes in the crypto market.
The impact of regulatory clarity on institutional participation in the crypto space and how it shapes market dynamics.The necessity of continuous learning and adaptation in the fast-paced world of crypto trading, emphasizing the importance of staying informed about market trends. 

EP 1 — Arbelos Markets’ Josh Lim on Risk Management Strategies in the Crypto Market

In our very first episode of Derivatives Decoded, our host, Founder & CEO of Kemet Trading, Ash Ashmawy, speaks with Josh Lim, Co-founder of Arbelos Markets. Josh shares his insights on the dynamic world of digital assets and the challenges faced by participants in the crypto market. He emphasizes the importance of effective risk management strategies to navigate volatility and ensure sustainable growth. 
Josh also discusses the critical role of building trust within the industry, highlighting how collaboration among service providers can foster innovation and attract institutional participants. With his extensive experience, Josh provides valuable perspectives on the future of digital assets and the evolving landscape of finance. 
Topics discussed:
How the crypto market is changing, including emerging trends and the increasing interest from institutional investors.
The unique hurdles faced by both newcomers and seasoned players in the rapidly changing crypto environment.
The necessity of implementing effective risk management strategies to navigate the inherent volatility of the cryptocurrency market.
How trust is essential for fostering relationships and encouraging participation among institutional investors in digital assets.
The significance of collaboration within the industry to create innovative solutions that address common challenges faced by participants.
The competitive nature of the crypto market and how participants can differentiate themselves to gain an edge.
The differences between retail and institutional investors, and how their approaches to the market vary.
The potential for increased institutional engagement in the crypto space and what that means for the industry’s growth.
The role of technology in enhancing market access and efficiency, which is crucial for participants in the digital asset space.
Unique strategies that can help participants effectively navigate the complexities of the crypto market.