An Exchange-Cleared Framework refers to a system where a central exchange acts as the counterparty to both sides of a trade, assuming the credit risk and ensuring the settlement of transactions. This structure typically involves the exchange guaranteeing trades and managing collateral requirements, thereby reducing counterparty risk for participants. It is a standard model in traditional derivatives markets and is being adopted in digital asset exchanges for enhanced security and stability.
Context
The discussion around exchange-cleared frameworks in crypto markets centers on their potential to bring institutional-grade risk management to a nascent asset class. A key debate involves adapting these traditional models to the decentralized and often pseudonymous nature of digital assets. Future developments will likely see more regulated exchanges offering cleared derivatives products, attracting greater institutional capital and improving market integrity.
Integrating exchange-cleared perpetual futures enables institutional traders to manage digital asset portfolio risk with superior capital efficiency and precision.
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