Business Overview
Tai Ping Shan Capital (TPS) functions as a principal trading desk, providing market-making, trade facilitation and block trade services to a variety of counter-parties. Backed by Three Arrows Capital, a MAS licensed hedge fund with 4b USD + AUM, TPS has access to proprietary capital, internal tech and operational expertise, top-tier counter-parties, and exclusive investment opportunities. TPS is also applying Cayman Island Monetary Authority License.
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Risk Management Practices: The firm’s trading is mainly agency OTC, acting as a facilitator and intermediary. On the investment side, the firm takes some long-only positions in crypto projects and tokens which are subject to limited loss. The firm does not employ shorting or options strategies that may expose it to asymmetrical losses.
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Number of Dedicated Compliance Staff: >10
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Primary Risk Metric (eg VaR): The firm does not take directional risk aside from principal investments. The major risk metric for dealings in OTC is the liquidity of the instruments traded.
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Controls on Position Sizing: The firm’s policy is not to allocate more than 10% of its balance sheet to any single investment.
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Controls on Exchange Concentration: < 10% of total assets on exchanges.
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Controls on Illiquid Coin Exposure: The illiquidity of most principal investments is managed through NFTs provided to TPS as consideration at the time of investment. These NFTs are the most liquid when project tokens are the most illiquid and can be sold on the open market.
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Controls on Short Positions|The firm takes no short positions.
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Controls on Uncovered Options (if applicable): The firm acts as an agent for any options it deals with, ensuring it is not taking market directional risk.
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Controls on Smart Contract Risk: The firm does not engage with smart contracts.