Zhao’s job focused on developing the EMS’s futures trading services, which were added in 2002.Ī unique role like this gave Zhao a deep understanding of the importance of data to professional traders. Bloomberg also boasts a popular EMS, or execution management system, that gives institutional customers one place to trade across a vast array of markets & products. The Bloomberg Terminal is the largest financial desktop product in existence, and its electronic fixed income platforms rival Tradeweb & MarketAxess in size. As many of us already know, Bloomberg is much more than just a newsroom. Īfter finishing his work with the Tokyo Stock Exchange, Zhao took a job with an equally critical part of the financial system: Bloomberg Tradebook. Zhao speaking about TSE in a 2021 interview. So I never left that industry afterwards. “ I very soon learned, wait a second, there’s a lot of money flowing through these systems, just a huge amount of money. Zhao’s time at the Tokyo Stock Exchange gave him a foundation in market structure needed to make Binance what it is today. How does an exchange improve volume & market liquidity? They incentivize customers to trade certain products in a certain way, either through fee rebates or new market data services that help traders create new strategies. Zhao’s development work with the exchange included improving their core matching engine, the complex system that ensures trades are executed quickly & accurately.Ī look inside one of Asia’s largest exchange systems gave Zhao a unique understanding of incentives.
TSE’s flagship products include a large cash equities business, futures on the Nikkei Index & Japanese government bonds, and an extensive market data & connectivity unit. His first peak into the world of market structure came when he was assigned the Tokyo Stock Exchange as a client, one of Asia’s largest exchanges with 3,500 listed companies and more than $1 billion in annual revenue.
#IN RETROSPECT IT WAS INEVITABLE SOFTWARE#
After graduating from McGill University in Canada Zhao took a job with a software company doing outsourced development work. Zhao’s path toward Binance billionaire status began with an interest in computers. Where did Zhao’s expertise come from? How did this expertise catapult him to crypto’s most prolific CEO? Incentives, Data, Speed Zhao was an exchange, market data & HFT expert long before he entered the crypto space, and Binance’s design mirrors its founder’s understanding of how markets work. After examining Zhao’s past & experience with traditional market structure, his exchange’s success shouldn’t come as a surprise. The exchange retains the world’s #1 spot to this day, with nearly $5 trillion in YTD trading volume.īinance’s dramatic, nearly instant rise to the top of crypto may seem as fragile & mysterious as the industry itself. 6 million users had signed up to the platform & Zhao had amassed a nine figure fortune. Six months after launch, Binance was the largest crypto exchange in the world. Two years later Zhao made good on his prediction, raising $15 million to launch Binance out of Shanghai, China. “ I think we’ve entered a winter phase in the bitcoin industry, but I strongly believe it will pass. “ I’m pretty sure I will still be in the Bitcoin space ,” Zhao quoted during an interview. In 2015 Zhao left the firm citing differences with its CEO & a legal battle over his employment contract. In July 2017, a well known face in the crypto industry decided to launch his own exchange.Ĭhangpeng Zhao was best known for his role as chief technical officer of OKCoin, the second largest crypto exchange by trading volume at the time. * Author’s Note: this newsletter is taking a break next week - we’ll return to our normal cadence beginning Friday, July 9th.*
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