DRW is one of the leading proprietary trading firms in the futures markets.
In 2014, intrigued by the emergence of Bitcoin, the firm decided to explore the potential to enter this new marketplace by leveraging its trading experience and infrastructure.
DRW established a separate company called Cumberland that specializes in providing liquidity for large trades. Cumberland currently has about 10 people working out of DRW offices in Chicago and London, with support from many areas of the parent company. It does business with a wide range of customers from all over the world who want to buy or sell cryptocurrencies, and it sources the liquidity for these trades from within the over-the-counter market and from trading platforms in various parts of the world.
In this interview, Don Wilson, the founder and CEO of DRW, and Bobby Cho, the head of Cumberland, describe the challenges of finding liquidity in a highly fragmented market and the approach they take to managing the risks of doing business on these trading platforms.
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