Paradigm announces their partnership with crypto exchange FTX to launch spread trading.
Paradigm made this announcement via a blog post on Friday, August 12, 2022. According to them, this partnership will use “one-click” trading with “no-leg risk” for the spread between spot, perpetual, and fixed maturity futures on BTC, ETH, SOL, AVAX, APE, DOGE, LINK, and LTC. Also, FTX will provide atomic execution and clearing of both legs for such trades.
According to a social media post by FTX, in their words, “FTX has officially partnered with leading institutional liquidity network @tradeparadigm to make it easier and cheaper than ever to trade the spread between spot, perpetual, and futures instruments on BTC, ETH, SOL, AVAX, APE, DOGE, LINK, and LTC!”
According to Anand Gomes, Paradigm’s CEO, the arrangement aimed at drawing in new crypto investors interested in cash and carry trades — leveraging crypto spot purchases and futures instruments on FTX. Gomes added that the rollout could lead to new product offerings “further down the road.”
The firm said using atomic execution for both legs of the spreads trading was “structurally less risky” than those executed on a traditional exchange, allowing market makers to “quote much tighter prices and in significantly larger sizes.” According to Paradigm, the fees will be 50% less than that when executing two individual outright trades.