Forward Settlement: how a trading agent locks tomorrow's price without a clearinghouse
The article discusses how trading agents can lock in prices for future transactions without relying on a clearinghouse. It explains the mechanics of forward contracts and the challenges of ensuring both parties fulfill their obligations. The author proposes using hash time-locked contracts (HTLCs) as a solution to eliminate the need for a trusted intermediary.
- ▪A forward contract requires a fixed price, a future delivery window, and a guarantee that both parties complete the trade.
- ▪Traditional finance uses a clearinghouse to manage counterparty risk, but this model does not easily apply to autonomous trading agents.
- ▪Hash time-locked contracts (HTLCs) can provide an all-or-nothing guarantee without requiring a trusted intermediary.
Opening excerpt (first ~120 words) tap to expand
try { if(localStorage) { let currentUser = localStorage.getItem('current_user'); if (currentUser) { currentUser = JSON.parse(currentUser); if (currentUser.id === 3886649) { document.getElementById('article-show-container').classList.add('current-user-is-article-author'); } } } } catch (e) { console.error(e); } Baris Sozen Posted on May 22 Forward Settlement: how a trading agent locks tomorrow's price without a clearinghouse #mcp #ai #cryptocurrency #blockchain A trading agent agrees a price at 9am. Delivery is tomorrow. For the 24 hours in between, somebody is exposed: either the price moves and one side wants out, or one side simply doesn't show up to settle. This is the oldest problem in market structure, and traditional finance solved it a long time ago — with a clearinghouse.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at DEV.to (Top).
Discussion
0 commentsMore from DEV.to (Top)
