LoopFX has completed the first bank-facilitated peer-to-peer FX trades within State Street’s GlobalLINK FX Connect platform, matched via RBC Capital Markets.
Blair Hawthorne
The move represents an industry first, marking the first instance that asset managers can match trades directly with each other, while still operating within their existing execution channels spanning bank relationships, workflows and documentation.
Through this offering, asset managers will be able to leverage an additional source of liquidity, while maintaining the bank’s central transaction role and without requiring any development work.
Blair Hawthorne, chief executive and founder of LoopFX, said: “Asset managers matching with other asset managers has long been discussed – and now it is a reality. With no changes to legal documentation, no changes to existing workflow and by positioning banks at the heart of every trade, this is a groundbreaking achievement for the market.
“Our focus remains on supporting our clients. Right now, that means embedding LoopFX into automated execution workflows, so the LoopFX dark pool is checked ahead of the lit market automatically.”
Hawthorne confirmed that the firm is currently engaging with clients to launch new liquidity solutions, with further developments set to come into play later this year.
Read more – LoopFX launches as live FX liquidity network integrated with State Street’s FX Connect
The solution is also set to be rolled out across LoopFX’s client base later in July.
“This development represents a practical step forward in the development of institutional FX liquidity,” said Greg Fortuna, senior managing director and head of GlobalLINK at State Street.
“By enabling bank intermediated peer to peer matching within the existing FX Connect workflow, LoopFX is helping us expand the range of liquidity options available to clients while preserving the operational, credit and relationship frameworks they rely on today. We see peer to peer models as an emerging category and expect these capabilities to develop across multiple liquidity venues in response to growing client demand.”