Re:Even More Bay Area House Party
by monero-xmr on Tuesday January 03, 2023 @11:47PM
(#34242133)
Synthetix has been running a bucket shop for a long time. They added stocks through Kwenta but got spooked and removed them.
Re:Even More Bay Area House Party
by JumpCrisscross on Tuesday January 03, 2023 @11:58PM
(#34242205)
> Synthetix has been running a bucket shop for a long time
Well, this is an awkward moment to be in a car with a connected friend from Adelaide!
Invite them to our HN bashing on defi subthread party here!
Re:Even More Bay Area House Party
by JumpCrisscross on Wednesday January 04, 2023 @11:31AM
(#34247677)
Given Synthetix is based in NSW, the bashing will come in a more formal forum.
I don't see how this is describing the same thing:
https://en.wikipedia.org/wiki/Bucket_shop_(stock_market)
The Wikipedia description of a bucket shop says that it's gambling market on stock prices. The anti-stock idea in the article is a security where the holder is obligated to pay out the same dividends as the underlying stock. Not the same thing, AFAICT.
Not relevant to the discussion but why is it illegal? Would save a lot of transaction fees ...
Re:Even More Bay Area House Party
by ravel-bar-foo on Wednesday January 04, 2023 @06:58AM
(#34244551)
Probably because the counterparty is the dealer, so the dealer has to manipulate prices and terms in their favor to turn a profit. Also, since no actual stocks trade hands, there is no effect on stock price and no investment value.
There are derivatives that settle in cash[1]. How do they differ from a bucket shop?
[1] - https://www.investopedia.com/terms/c/cashsettlement.asp
A comment on the post covers that: It's called a "bucket shop", and it's illegal.