YouSaid · the spoken record

Luana Lopes Lara

lines on the record
59
first
2022-06-19
most recent
2022-06-19
sittings or episodes
1
sources
podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

  1. “So we had to view it because a lot of the process is actually proving to the CFTC that you can build the exchange and you can build the surveillance systems and you can build your customer support and all your operations of the company. And that was pretty much a strong part of the application. And to start a new asset class from scratch, even things like surveillance that I think a lot of people take for granted in an exchange because most exchanges actually use off-the-shelf solutions. For us, we needed to build from scratch because there are no like surveillance for event contracts out there. There are no policies and procedures around this that you can just buy. I think there's a law for options and other things like that. But for us, everything we needed to build from scratch and the regulators wanted to know that we could build everything. We could build the systems. We could build the exchange. We could build the infrastructure. We could have even funnily enough, it was before the pandemic started, it was 2019 and we already had to do like our business continuity plan that included a pandemic plan.”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT

  2. “Tells us do not come to talk to us again. We never want to see you again in front of us, and we're never going to let you do it. We're going to keep trying. And for us, it was really counting the tiny wins. It's like, oh, this one question out of like this huge list has gone away. So it means we're making progress and we're going in the right direction. I think it was a very much looking back. It was a little crazy for us to do that and keep pushing, but definitely what got us here.”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT

  3. “That is a great question. I think for us, a lot of the early wins were about just proving like moving a step forward with the regulators. So they would have, for example, a list of concerns. We would work through the list of concerns, talk to them, and then they would come out with another list of concerns. And for us, if the list of the second list of concerns came and they were indicating progress and that we were going in the right direction and we were convincing them what we were saying versus just like no, this is not something we're willing to understand or work on further. It was something that gave us the indication that we keep going. I think both of us are very stubborn people. And if we get a no or somewhat of an indication of a no that we don't really understand why it is a no or it doesn't really sound like a no and you don't really understand why we would keep pushing, I think internally we would say unless the CFTC”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT

  4. “Yeah, so as background, I'm not a lawyer at all. Probably the opposite of that. I was a computer science MF major in college, and so is my co-founder. We didn't really know the regulatory landscape at all, but we did from the beginning understand that regulation was the key piece to getting this to work out. Both, I guess me and my co-founder are very motivated and a little paranoid people. So we're like, we need to get the best counsel we can. How are we going to understand this? We know nothing about the law, nothing.”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT

  5. “Had with all the regulation around it, so things like manipulation and gaming and the hedging utility and how these markets would actually work to be able to launch them. But now we really got the setup that allows us to try to get event contracts to be a mainstream asset class and really reach its full potential. So looking back, definitely the right decision to go through the regulated path.”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT

  6. “And things like that. And for us, we needed to do the right way and do it regularly because that's the way you get real money into the system. You get brokers, market makers, and institutions and things of the sort. So we really saw this as the only way to bring our mission at Causi to reality. And we went through with it. It took us two and a half years to get regulated and to be able to launch and get our markets through. And I think the people that tried to do this before, they tried to move fast and break things and not do these things the right way and like have customer protection the right way and regulation and they ended up failing. And for us, we just really had the grit of working it through. But it was definitely a very, very hard draft. My co-founder loves to say that it's like you're climbing a mountain and you think you're getting close to the top and then you realize a mountain is twice as tall and then you keep going and it just keeps doubling and doubling because we pretty much had to work through all the concerns of regulators.”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT

  7. “Is a great question. The CFTC is a commodity futures trading commission. So they are the federal regulator for derivatives markets the same way that the SEC regulates securities, trading the CFTC regulates derivatives, commodities like grain futures and things of the sort. And under the regulation, under the laws, events are considered commodities. So the types of contracts we offer, event contracts, are technically derivatives on commodities under the law. So it means we're regulated over the CFTC. So the CFTC regulates our markets. Historically, yes, people have not been able to do what we're doing now. And I think the answer is a lot, I guess, unsexier than people think it is. I think that it was really about grit and patience. We wanted to do things the right way because we really saw this as the only way to see event contracts become really reach its full potential and become a mainstream asset class like stocks and now crypto.”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT

  8. “Pretty much becomes a probability of it happening. So let's say the market's trading at around 20 cents, it means the market believes there's 20% chance that inflation will be above 1% this month. And because this is a market price, it's a very accurate prediction of what the markets think will happen. So that's another very exciting thing about our markets that will become pretty much the best forecasters for the events that we offer.”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT

  9. “Course, thank you so much for the kind words. So, Gauch is a financial exchange that allows people to trade on the outcome of events. We have developed a new asset class called event contracts that lets you trade directly on the outcome of events. So the same way you trade stocks, bonds, or crypto, now you can trade the outcome of events directly. Some examples of contracts we have live right now are things like will a recession happen this year? How high will inflation get, or what will Biden's approval ratings be by the midterms? The novelties that were the first regulated exchange were regulated by the CFTC, the Commodity Futures Trading Commission, that is allowed to do this. So how does it work, right? The way that it works is that you can buy yes or no positions as to whether an event will happen. And the price is from zero to one. So let's say, will inflation be above 1% this month, you can buy yes or no position, and the price is from zero to one. And because the price from zero to one, the market price.”

    2022-06-19 · We Study Billionaires · TIP458: Why Billionaire Charles Schwab Invested in Kalshi w/ Luana Lopes Lara · IDENTIFIED FROM THE TRANSCRIPT