A Trader and Industry Executive Who Continues to Change with the Times.
John Lothian News interviewed Scott Knudsen, the founder of Cove Markets and a longtime former executive with IMC, for The Path to Electronic Trading video series, but we broke off this part of the interview into a stand-alone video.
Knudsen talked about his early experiences with the crypto markets, starting in 2012 when an IMC employee talked about a quirky new product. That product was what encouraged Knudsen to launch Cove Markets.
Knudsen and his IMC team in Chicago took a deep look at bitcoin back in 2017. The initiative at IMC was scrapped as other more profitable markets needed the resources at the time.
However, Knudsen was encouraged to look at crypto by one of the biggest investors in the space. Despite a market that looked like a bubble, he jumped into bitcoin anyway.
He and a friend from the industry considered starting an exchange and how lucrative it might be. As he talked to more people in the space, the bubble in bitcoin broke in 2017.
Asking himself how he could add value to the space, Knudsen said he decided to build a tool for traders to get the best execution, much as he did at IMC when they addressed how to trade multi-listed options in an increasingly electronically traded equity options world. With a fragmented market and no Reg NMS to bring the market together, Cove Markets was the result and Knudsen tells the story of building the firm and the best execution platform.