March 30, 2023
Welcome to the AD Derivatives Podcast Led by Director of Derivatives; Greg Magadini, CFA. Featuring: Laura Vidiella, VP of BD & Strategy at LedgerPrime
In this discussion, Laura Vidiella, an experienced professional in the crypto volatility space, shares insights on the dynamics of market making within the crypto options market. The conversation delves into her career journey, market-making experiences on different platforms, and her views on the current state and challenges faced by the crypto options industry.
Market Making on LedgerX and Paradigm:
Laura Vidiella starts by highlighting her experience in working operations at LedgerX, a regulated US crypto options venue with fully collateralized mini contracts. At LedgerX, they cater to both retail and institutional players and have witnessed significant growth over the years. She then moves on to her time at Paradigm, a block trading venue for crypto options, where institutional players interact with market makers to execute large block trades. Laura highlights the benefits of this model and the collaboration among market makers to facilitate trade efficiently.
Challenges in Crypto Options Market Making:
Laura discusses the challenges faced by the crypto options market-making industry. While the volumes have been good, some market participants faced losses due to recent market events. Additionally, she emphasizes the need for more funds and liquidity to enter the space and fuel further growth. Moreover, she believes that crypto options, though a valuable product, might feel complex and intimidating to some, leading to slower adoption.
The Rise of DeFi Options Market:
The conversation briefly touches on DeFi options and their growing popularity. Laura mentions the advantages of DeFi options, particularly in terms of simplicity and accessibility for retail traders. However, she notes that certain issues, such as expirations all happening, at the same time, have led to discussions and adjustments in the DeFi options space.
Regulatory Considerations and Potential Future Growth:
Laura expresses the need for more regulatory clarity in the crypto options space to attract institutional investors. While the CME has been successful in attracting institutional players, she believes that once LedgerX obtains the amendment for margin trading, it could bring a significant shift within the regulatory exchanges' scene.
Skills and Advice for Aspiring Professionals:
When asked about advice for individuals aspiring to enter the crypto options market-making industry, Laura highlights the importance of continuously learning and staying updated with technical skills, particularly coding. Moreover, she emphasizes the significance of partnering with the right people and mentors to gain insights into traditional finance and navigate the complexities of the market.
In conclusion, Laura Vila's discussion sheds light on the current landscape of crypto options market making, its challenges, and potential growth opportunities. As the industry evolves, she advises aspiring professionals to stay open to learning, seek mentorship, and collaborate with the right people to thrive in this dynamic space.
