Eight former core developers from one of Wall Street’s top investment banks, Morgan Stanley, have launched a cryptocurrency derivatives exchange with big claims.
Named Phemex (references “the Greek Goddess of fame and good repute Pheme”), the exchange claims to be 10 times faster as compared to other cryptocurrency trading platforms with the ability to manage 300,000 transactions per second. It also claims to have an order entry and response time of “less than 1 millisecond.”
Available for both retail and institutional clients, Singapore-based Phemex offers several cryptocurrency perpetual contracts, tied to bitcoin (BTC), ether (ETH), XRP, litecoin (LTC) and EOS, with up to 100 times leverage.
“These trading metrics are on par with those experienced at some big investment banks like Morgan Stanley. Our matching engine, trading engine, and risk engine were six months in the making, putting the platform technically on par with Nasdaq,” said Jack Tao, who spent 11 years at Morgan Stanley as the global development leader of the bank’s electronic trading benchmark execution strategies, before co-founding Phemex.
Tao brought in seven other executives as well from Morgan Stanley to join his venture.
Traditional finance to crypto
But why a shift to crypto from traditional finance? Mostly for two reasons, Tao told The Block. “First, we believe that the derivatives market has great potential for growth, this belief was supported by our research during the initial stages of Phemex. Second, coming from traditional finance, where technical standards are considerably higher, we see plenty of room for improvement.”
Tao acknowledged that the crypto derivatives market is “crowded,” but said “ongoing news of technical and security issues regarding major exchanges are also very common. This tells us that our expertise can bring value to the industry.”
Phemex is built using C++ and React programming languages,