Re:FTX’s balance sheet was bad
by bmitc on Monday November 14, 2022 @05:20PM
(#33602113)
But isn’t that basically the line of business of an exchange and a trading firm, supposedly one specializing in arbitrage? And despite its difficulty, which I can understand, it still seems like something that should be a bit more automated than the CEO typing them into a spreadsheet a week before the company collapses and warning readers of the “obvious” chance of typos.
[ Parent
| on HN ]
Erm yes you are correct, this is the line of business they’re in and they should have had better controls for valuing their assets.
Typically there’s a 3rd party fund administrator whose core responsibilities include calculating the value (NAV) of the fund.
Sometimes funds have Level 2 or Level 3 assets, which may require management effort to value and may not have real-time pricing available.