What Are the Operational Challenges of Cross-Margining across Different Crypto Exchanges?

The main challenges are the lack of standardized collateral management and the difficulty in achieving real-time, trustless settlement across disparate platforms. Each exchange has its own margin rules and custody arrangements.

Cross-margining requires complex reconciliation, a master netting agreement, and a mechanism to transfer collateral quickly and securely between the exchanges, often involving a prime broker as the central hub.