Mastering Spot Trading Strategies with Subaccounts | European Blockchain Convention

[Music] so hello everyone um thank you for joining me today at our master class so my name is Sana sailor and I'm the senior institutional relationship and solution manager at Kraken who doesn't know Kraken is one of the largest and most trusted crypto exchanges globally founded in 2011 now we have over 2 and a half thousand people spread across 70 countries we were the first to introduce FAT trails for British ponds and Euro today we are the market leader in Euro volume and liquidity we launched Kraken institutional earlier this year and with kren institutional we Unite comprehensive institutional offering under one umbrella that includes OTC desk Sport and Futures platform our borrowing and lending staking custody well the topic for today is sub account accounts so maybe let me start with brief explanation what subac accounts actually are subac accounts are subsidiary accounts working under one larger main account and that is especially useful for clients um using or managing several funds because they can segregate their trading strategies their trading Capital between several individuals or Bots um so at Kraken you can open up to 10 sub accounts and the borrowing uh the um withdrawal and funding is managed by the master account and that is done for the purpose of better control to date sub accounts are mainly used by uh companies and firms with segregated business lines like let's say if they want to segregate uh trading versus staking or uh with four different markets like Euro Bitcoin US dollar Bitcoin um or the companies um Pro proprietary trading firms right so because they use different strategies and deploy several Traders let's have a look how sub accounts can help managing margin collateral well uh margin is good good for Capital efficiency so companies instead of deploying all their capital in existing trades they can use margin to um manage an existing uh positions and deploy the remaining Capital elsewhere so uh sub accounts can further enhance margin utility and that can be done in the following ways well first of all margin setting can be adjusted to the particular sub accounts uh trading and risk profile so with that it ensures that collateral is managed properly and efficiently second sub account accounts segregate risk so if one subac account does not perform well the strategy doesn't work well this does not affect um collateral used in other sub accounts which are performing better thir uh sub accounts help and um enhance monitoring so you can better uh track your collateral um so and yeah crack Kraken to enhance uh Trader um experience while they are trading Kraken made transfer between sub accounts and master account immediate and free and this makes the management of margin collateral pretty easy and without any frictions so let's let's have a look how subac accounts actually work at Kraken and well Kraken has developed its offering to make it ideal for sub account accounts sub accounts trade independently but Kraken Aggregates trading volumes of all subac accounts to determine the appropriate fetier with that each sub account has better fetier than um trading volume of this particular sub account actually is furthermore um Kraken institutional launched its uh qualified custody solution earlier this year and we realize that our institutional clients they require custody solution which is not just highly secure but also flexible and allow for immediate transfer so cracken custody is a bespoke service and with that clients can set their specific rules and controls uh for their accounts let's say if a client wants to that the funds remain in the custody until they're ready to trade they can set this specific rules and that's exactly ideal for clients using sub accounts because then they can set uh these particular rules that uh confirm what each sub account is allowed to do and how much it can withdraw from the custody at any particular point of time so um let's see what's coming next well we have seen uh institutional adaption growing over the P past years uh but what we recognized from Kraken institutional perspective is that even more broader range of Institutions is coming to crypto space like if we saw mainly crypto specific firms or uh High net worth individuals uh asset managers uh using crypto previously now we see hedge funds are registered investment advisors uh exploring their participation in crypto it won't take long till we will'll see indom funds and um Pension funds coming into crypto space well what do those traditionals value are exactly these tools they got used to using in traditional finance and sub account accounts is one of them so Kraken adapts um they're offering um and features especially for sub accounts for their optimal usage by those newcomers from traditional finance and uh let's say the new feature one of the new features which will come on the market within the next month will be portfolio margining and that means that clients can assess the risk of the sub account portfolio instead of assessing the risk of each position individually there is more to come uh stay tuned to wrap up um I would like to say that Kraken is all about uh to bring you the best tools and services to succeed in a fastpaced world of crypto and we excited to developing with you and to grow with you just as the market grows thank you very much for being with me today and please don't hesitate to drop by our boo our stand we are happy to answer any questions our team is here thanks a lot give it up first fet Lana sailor thank you so much for joining us