Trading authorization for voice trading: how it works in crypto markets

Finery Markets introduces a groundbreaking feature for the digital asset space: Authorized Trading. Available to all Master accounts on FM Liquidity Match and FM White Label, this functionality enables clients to grant trade authorizations to their counterparties, streamlining operations and better controlling risks. 

The ability to delegate trading actions, while allowing authorized counterparties to maintain control over critical parameters, offers improved organizational and risk management tools for voice and chat trading.  

What is Voice/Chat Trading?

Despite the widespread adoption of technology in crypto markets, there is still a strong preference for voice or chat trading in over-the-counter (OTC) markets. The inherent flexibility and adaptability of voice or chat communication via Telegram, Slack, or WhatsApp make these platforms particularly effective for transactions that require negotiation and customization. In such scenarios, the subtleties of human interaction are invaluable. 

What is Trading Authorization?

In the context of Finery Markets, trading authorization refers to the ability of a Master account holder, such as a broker or OTC desk, to execute trades on behalf of its clients. This type of authorization allows selling digital assets, deposit or withdrawal funds. Much like a power of attorney, trading authorizations on Finery Markets allow firms to delegate trade execution to trusted partners. This optimizes trading operations and eliminates inefficiencies for trades completed via chat or voice. 

How Does Trading Authorization Work?

Traditionally, trading authorization allows account holders to provide specific access levels to designated parties for executing trades on their behalf. In equities markets, those authorizations are typically divided into limited and full authorization. 

These access levels are clearly defined through formal agreements to ensure accountability and control. Trading authorization can be customized to suit the specific operational and risk management needs of each institution, enhancing both flexibility and security.

In the case of Finery Markets, customization occurs entirely within the platform, allowing Master account holders seamless access provided by its clients. 

Finery Markets: use cases

Clients of Finery Markets with Master accounts can create Authorized trade or Liquidation types for Risk Management purposes. This feature opens numerous practical applications in the crypto sector and can significantly enhance the efficiency of any OTC desk or broker.

• Streamlined orders placing: for high-touch or voice/chat trading desks, it simplifies the process of placing trades on behalf of clients and automatically hedging them using Finery Markets' spread management feature for instant execution. An intuitive GUI assists in making transparent decisions by using parameters such as price-change tolerance and expected position changes.

• Organizational flexibility: users gain full control over trading, deposits, and withdrawals for sub-accounts, which is particularly useful when sub-account holders are unavailable due to time zone differences or travel.

• Dynamic risk management: this feature allows for quick decision-making within set limits, providing a balance of control and flexibility that is crucial in volatile markets.

Bottom line

Finery Markets is well-known for delivering robust trading solutions tailored to institutional crypto players, covering the full spectrum of trading activities. From front-office functionalities like authorized trading, RFQ, and real-time market data, to mid-office risk management tools and back-office compliance and settlement solutions, we equip institutions with the tools needed to operate efficiently in today’s digital asset landscape.