Annanay Kapila – Perpetual Futures Everywhere and All the Time (S7E24)

The conversation centers on the potential of perpetual futures (perps) in traditional financial markets, particularly equities, and the mechanics of QFEX, a new exchange designed to facilitate this. Annanay Kapila, founder and CEO of QFEX, argues that perps offer advantages over traditional futures by eliminating expiry dates, reducing liquidity fragmentation, and providing capital efficiency. He addresses challenges like managing risk during off-market hours and incorporating corporate actions into perp contracts. Kapila details QFEX's liquidation engine, designed with multiple thresholds and agreements with market makers to handle liquidations smoothly, and shares his insights on high-frequency trading and market microstructure. He believes perps will succeed where tokenized spot assets have faltered due to the inherent leverage and capital efficiency they offer.