The Pomp Podcast
#485 Neil Sheppard on the Future of Derivatives
- Neil Sheppard's background spans 20 years in traditional finance (equity products at Nomura across London, Tokyo, Hong Kong) before joining Diginex, where he now leads Financial Services as COO.
- Diginex operates a comprehensive ecosystem including EQUOS exchange, custody solutions (DigiVault), trading systems (DigiNEX Access), and investment banking services through EQUOS Capital.
- Derivatives—particularly futures and options—are essential risk management tools, not inherently risky; the distinction between leverage applied by users versus products designed as leveraged instruments matters significantly.
- EQUOS differentiates itself by understanding customer risk holistically (spot, derivatives, custody holdings together), avoiding margin charges on hedges where long positions offset short positions, and refusing to profit from liquidations.
- The platform employs competitive pricing in liquidation processes and does not market-make on its own exchange, maintaining a fair marketplace where EQUOS has no informational advantage.
- Structured products—popular with Asian retail investors through traditional wealth platforms—are key to building sufficient options liquidity; EQUOS plans to distribute crypto-backed structured products to bring both sides of volatility trades onto the platform.