N1 Prime

N1 would count a maker's eligible collateral and offsetting positions on connected exchanges when it sets that maker's limits on N1.

• The connected exchange keeps its own margin rules. N1 sets its own limits on what it recognizes.
• Makers quote on N1 and hedge their remaining risk on the venue they choose.
• Traders still execute on N1's order book or RFQ market. Nothing is routed to another exchange: outside venues support the maker's risk, while the trade, the order book and the price history stay on N1.

A maker short on N1 and long the same asset elsewhere carries much less price risk than either position alone. Separate exchanges can still each ask for full collateral, treating one hedged book as two unrelated bets.

The extra capital a maker must commit to quote on a new venue is one of the first things it weighs. If collateral and hedges it already holds can support part of an N1 position, a maker can start quoting on N1 with capital it has, learn how the flow behaves, and add more only if it pays.

N1 still has to count every claim on that collateral. Prime does not pretend a maker has more money than it does.

A maker's lower cost becomes a better price only when independent makers compete for the same order. Prime is designed as a network of independent makers with their own capital and strategies under shared risk rules, not one larger house vault.

Traders care about the whole trade: the fill price, the fee and, for longer positions, funding. Prime is aimed at the fill. See the all-in cost of a trade for how the four costs add up.

• Prime is a proposal. It is not live for general use and will roll out in stages.
• It is about maker margin. It is not an order router and does not send trades to other exchanges.
• Today every N1 trading account is already a cross-margin portfolio. Portfolio margining across correlated markets is a separate item on the N1 roadmap, in private testing.

Tell us which venues you hedge on and how much capital you would need to quote on N1.