Workbook New Topics Flashcards
Why Crypto Custodians?
Rise in popularity of crypto has resulted in the need
What does a crypto custodian do?
Give 2 examples of crypto custodians
Protect the keys and wallets of cryptoholders
1) Coinbase Custody
2) BitGO
Who has shown interest in crypto custody?
Traditonal Custodians
What 3 ways does crypto cusdody differ from tradition?
1) Security is more complex - cold storage & biometrics
2) Regulation - nascent market with less regulation -> developing and building legitimacy
3) Trasparency - more transparency needed due to complexity (transapent on process and fee)
What does an NFT custodian do?
1) Protect from loss, theft and accidental deletion
2) Insure and Authenticate (help collectors)
How are customers onboarded to crypto custodians
Similar to traditional
Complete KYC and AML then transfer assets / wallets to custodian
Name the first 5 market orders
those without periods of validity, or certain quantity requirements
1) Limit Order
2) Market Order
3) Market If Touched
4) Opening Order
5) Closing Order
Name the second 5 market orders
those with periods of validity, or given certain quantity requirements
1) Good Til’ Cancelled
2) Immediate or Cancel (fill or kill)
3) Stop Loss
4) Stop Limit
5) Day Order
What is a limit order
An order to execute at a price or better
Will not fill if price unavailable
What is a market order
Execute at best immediately available price
What is a market if touched order
Once the price hits a certain level - the order becomes a market order
Take advantage of falling prices
What is an opening order
Execute with or without a price within the first 2 mins of opening
Will be cancelled if cannot fill
What is a closing order?
Same as opening but at closing
What is a good til’ cancelled order?
Offer is firm until client says otherwise
Most orders are good for the day
What is a Immediate or cancel order?
Fill or Kill
Execute under conditions - if not available then cancel
What is a stop loss order?
Close out position at a certain price level to limit loss
No guarentee order can be closed out if thin liquidity
What is a stop limit order
Stop loss with a range to execute
e.g. stop selling asset for too little if price falls below stop loss level
when share hits $50, sell at any price between $49 & $50
What is a day order?
An order that is good for the day
Can be placed for the following day
What do the REIT tax reforms aim to do?
Reduce the constraints of operating as a REIT
Widen the scope of businesses which can operate as a REIT
What were the two REIT tax reforms?
1) A property sale within 3 years of significant developments will have its valuation price adjusted up
2) Property income distributions (PID) to partnerships are now part gross and part tax deducted
What are the risks of cash deposits?
1) Inflation
2) Interest
3) Operational - poor service leads to a loss
4) Default - deposit taker defaults (large risk if deposit >£85k FSCS limit)
Cash deposits are low risk, but not risk free
