US equities alternative trading system (ATS) OneChronos has received approval from the Financial Conduct Authority (FCA) to operate as a regulated entity in the UK, as part of the firm’s continual European expansion.
As part of the move, the firm is set to launch multilateral trading facilities (MTFs) in the UK, in a bid to bring OneChronos’ Smart Market model currently operating as an alternative trading system (ATS) in the US, to the UK.
“Receiving FCA authorisation is an exciting and significant achievement for OneChronos and a key step in our mission to deliver a new generation of trading technology to European markets,” said Scott Bradley, chief executive of OneChronos Markets UK.
“This milestone reflects our commitment to bringing a fundamental innovation to trading venue operations, aligning execution outcomes more closely with participants’ objectives and improving overall market efficiency.”
The launch also aligns with the firms’ efforts in the EU, where its UK subsidiary is currently bidding for regulatory authorisation, with operations set to be based out of Amsterdam.
Bradley also told The TRADE: “Taking a first principles approach, the OneChronos model allows orders to compete directly on price and quantity by removing speed as a factor in execution quality. There is no concept of queue priority in the book, therefore the mechanism by design truly democratises access to quality liquidity. This really matters to subscribers and their end clients by genuinely levelling the playing field for all investors.
“OneChronos utilises periodic auction mechanics but brings a completely new model to the region. Ultimately, we aim to reduce the cost of execution while unlocking new trading opportunities and expanding overall market volumes. Through measuring the execution outcomes when trading in the OneChronos ATS in the US, third party validation is showing market leading high quality, low reversion metrics and we intend to bring this experience to European clients.”
Specifically, the firm makes use of mathematical optimisation in its offering, to match orders based on dimensions spanning price, size and trader objectives.
The authorisation follows news in November 2024 that OneChronos had raised $32 million in a funding round, as part of an effort to “optimise growth and expand trading opportunities” as well as bolster its core business segments and grow in new markets.
Additionally, the firm is also expanding into APAC markets, and in August, the firm selected former BlackRock managing director, Junya Umeno, as the its new head of Japan markets, to develop Japan as a central hub for the firm.