What counts as "block size"
- HK$1M / 100,000 BTC / 5 BTC and above.
- One-shot settlement or multi-day TWAP / VWAP.
Standard flow
1. RFQ
- Client provides: size, asset, settlement currency, preferred chain, time window.
- Desk quotes based on liquidity, market and credit.
- Quotes typically live 30–60 seconds.
2. KYC + EDD
- Individuals: ID, proof of address, source of funds, occupation, purpose.
- Entities: incorporation, director KYC, UBO structure, AML policy.
- KYT: on-chain analysis of counterparty addresses.
3. Price lock
- Both sides sign a Trade Confirmation.
- Large size may include 1–5% margin.
- T+0 or T+1 settlement window agreed.
4. Settlement
- Fiat: SWIFT / FPS / local clearing.
- Crypto: split or single transfer; BDs from both sides on a call.
- Either side moves first → both confirm → other side releases.
5. Confirmation + statement
- TXID + bank slip + Trade Confirmation = full audit trail.
- Invoice / receipt retained ≥ 7 years.
Four levers for negotiation
- Size — each magnitude jump can shave 5–20 bps.
- Timing — avoid Asia/US handover hours (thin liquidity).
- Rails — bank-to-bank beats cash on cost.
- Relationship — sticking with one desk tightens spreads.
Don't ping 5 desks within 5 minutes — OTC is a small world; "shopping the market" tends to get you worse pricing.
Risk controls
- Credit: verify the counterparty's licence and registry.
- Settlement: use escrow or third-party custody.
- Compliance: refuse unknown SoF; refuse mixer-tainted addresses.
- Operational: don't settle corporate trades on a personal account.
Booking with Funshell
Our OTC desk supports Causeway Bay / Mong Kok visits, pre-trade KYC online, and on-site service. Book a block-trade room via contact-us.
