| Kraken Intelligence

Out With The Old, In With The New: Market Structure Analysis

Kraken Intelligence, Market Structure Report

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Retail investors have more information and more tools at their fingertips than ever before. 

But while charting tools, income statements and commission-free trading are empowering many, intermediaries continue to hold power over order execution and transparency, a structure that appears to tip the scales in favor of established investors.

Still, it’s not easy to understand how and when you might be putting your money at risk. 

That’s why Kraken Intelligence, our in-house research experts, has compiled a robust analysis of how markets are structured that examines both the issues inherent in traditional markets and how cryptocurrencies and digital assets level the playing field.

By downloading our latest report, you’ll gain new insights into the potentially unfair influences in traditional markets, how order flows really work and the promise the 24/7 crypto markets provide. 

Further, we’ll examine and demonstrate the advantages offered by crypto markets, looking at how these technological advances will force legacy markets to catch up.

Key Takeaways:

  • Order Flow & Process In traditional markets, when a participant places an order, there can be two to three intermediaries that hold influence over order execution. In crypto markets, your orders go directly to the exchange’s orderbook eliminating the opportunity for others to profit off of the order information.
  • Legacy Market Inefficiencies – Whether it’s the price of assets being inflated through central bank intervention or high-speed trading tactics affecting price, traditional markets carry risks and inefficiencies. Comparatively, crypto markets are driven by open-source code that gives equal access to everyone regardless of their portfolio size.
  • Potentially Dishonest Intermediaries – To participate in traditional markets, one has to work through a broker, advisor or other intermediary. In spite of regulations to protect participants, dishonest activity can occur and mechanisms such as suspended trading may put the retail participant at a disadvantage.
  • Tokenization and Autoliquidation – Blockchain technology is a major step forward for investment activities. Improvements in transparency, speed of settlement and automated systems could further reduce costs as well as opportunities for unscrupulous behavior.

Download Our Full Report