Finery Markets at iFX EXPO 2023: No more ‘last look’ in OTC trading

Rick Steves

Finery Markets’ CEO Konstantin Shulga spoke with FinanceFeeds’ Editor-in-Chief Nikolai Isayev about its newly launched FM Liquidity Match for brokers, ‘last look’, crypto hubs, and its Referral Program.

Finery Markets Fintech Unplugged

This year’s iFX EXPO International 2023 took place at the City of Dreams Mediterranean Integrated Resort in Limassol, Cyprus.

From 19 to 21 September, the resort hosted over 4,000 attendees, and more than 100 speakers, bringing together professionals in online trading, fintech, and financial services across Europe, Asia, and the Middle East.

Among the leading names present at iFX EXPO Asia 2023 was Finery Markets, an OTC trading solutions provider, connecting businesses with best-in-class liquidity providers through a proprietary matching engine.

Finery Markets brings FM Liquidity Match to iFX EXPO 2023

Founded in 2019 by chief executive Konstantin Shulga and head of product Ilia Drozdov, Finery Markets has grown a significant presence in the OTC space with its flagship product, FM Marketplace.

Earlier this year, Finery Markets launched a gateway to OTC trading infrastructure designed to be a comprehensive solution that enables market players to launch a fully electronic OTC trading business and manage client relations throughout the entire trade cycle.

Going by the name of FM Liquidity Match, the platform comes with a proprietary matching engine and operates through a sub-account model, allowing for easy customization and management of risk limits, positions, and trading history.

The product, which caters to institutions and crypto businesses, is said to be the first-ever electronic OTC-as-a-service that allows users to access liquidity for digital assets in an electronic and automated way.

Under the hood, FM Liquidity Match utilizes a sub-account model to provide a unique OTC trading experience for digital asset providers. Specifically, a master account is created by each broker, prime broker, OTC desk, or liquidity provider, which then opens multiple sub-accounts to serve the different segments of its client base via GUI or API.

FM Liquidity Match tackles “Last Look” in Crypto

In an exclusive interview conducted at the FinTech Unplugged after-party co-hosted by Finery Markets, FinanceFeeds had the privilege of sitting down with Konstantin Shulga, the visionary co-founder and CEO of Finery Markets.

The conversation touched upon a range of critical topics in the rapidly evolving world of cryptocurrency trading and regulation.

Shulga began by shedding light on how Finery Markets is addressing the pressing issue of conflicts of interest, execution quality, and pre-funding requirements in the crypto trading space. He emphasized the company’s dedication to non-custodial institutional-grade technology and unbundled services since its inception in 2019. Their standout product, FM Liquidity Match, is positioned as a solution that empowers brokers, OTC desks, custodians, and exchanges to deploy a non-custodial trading setup with the proprietary matching engine to access firm liquidity pools, backed by leading institutional liquidity providers.

One of the most debated topics in the crypto space, the “last look,” was next on the agenda. Shulga highlighted the stark differences between traditional finance and the crypto realm, where last-look practices have sometimes resembled a “Wild West” environment. He stressed the critical importance of mitigating slippage, especially during bear markets, and how a no-last-look liquidity pool enhances execution quality.

As the crypto landscape continues to evolve, Shulga was asked about Finery Markets’ strategy to remain at the forefront. He emphasized the importance of connecting the fragmented crypto industry through a marketplace. The company is looking to expand its service offerings by partnering with major prime brokers, custodians, clearing houses, and financial service providers.

Shulga disclosed that Finery Markets is actively exploring partnerships with established players like Gold-i. These collaborations aim to provide clients with tailored execution quality while allowing partners to tap into Finery Markets’ client base.

Best crypto hubs and 30% rebate

As to the challenges faced by crypto players in the banking sector, he underscored the need for regulation that doesn’t concentrate the crypto industry within a few banks. More crypto-friendly banks and EMIs would foster industry diversification and, he hopes, trigger the next wave of institutional adoption.

The interview touched upon Finery Markets’ recent introduction of a referral program. Shulga detailed how this program incentivizes existing clients to refer new ones, fostering long-term partnerships. Clients can receive a 30% rebate from trade commissions paid by referrals, as well as their counterparties which provides liquidity on the platform.

Shulga’s insights extended to the global regulatory landscape. He noted that regulatory developments in the US, Europe (specifically Mica), and the Middle East (UAE) are crucial for the industry’s growth. He identified key crypto hubs, including London, Lisbon, Hong Kong, Singapore, and Abu Dhabi/Dubai, as leaders in adopting favorable regulations.

The interview concluded with a discussion on emerging crypto hubs. Shulga highlighted Portugal as a thriving hub, attributing its success to digital nomad visas and favorable taxation. Other hubs mentioned were London, Singapore, and the growing influence of Cyprus. Switzerland, once considered a crypto powerhouse, seemed to have taken a backseat.

In closing, Shulga expressed his gratitude for the insightful conversation and extended his best wishes to FinanceFeeds Editor-in-Chief Nikolai Isayev. The interview provided a comprehensive glimpse into Finery Markets’ strategies and their vision for the future of cryptocurrency trading and regulation.

Read this next

Retail FX

Revolut eyes Big Four auditor as board frustrated by BDO remarks

British fintech firm Revolut is reportedly considering a change in its auditing firm following a warning in its last annual accounts, as audited by BDO.

Institutional FX

Börse Group’s 360T taps Virtu for TCA and trading analytics

Virtu Financial and Deutsche Börse Group’s FX platform, 360T, have teamed up to improve the foreign exchange trading experience for their clients.

Digital Assets

Bybit Surpasses 20 Million Users Milestone Ahead of 5-Year Anniversary

Celebrating its 5th anniversary in December of this year, Bybit announced that it has surpassed 20 million registered users, highlighting its growth and position in the industry.

Digital Assets

Changpeng Zhao leaves Binance.US as SEC ramps up scrutiny

Changpeng ‘CZ’ Zhao has resigned from his position as chairman of the board for Binance.US, distancing himself from the governance of the American division of the cryptocurrency exchange.

Digital Assets

M2 granted full license to operate multilateral trading facility in UAE

Cryptocurrency exchange M2 has been approved as a fully regulated Multilateral Trading Facility (MTF) and custodian, now authorized to engage with UAE retail and institutional clients.

Digital Assets

Court approves Voyager’s $1.65 billion settlement with FTC

A New York federal judge has given the nod to a settlement that holds Voyager Digital and its former CEO, Stephen Ehrlich, accountable for misleading investors about the safety of their funds.

Retail FX

Financial Safety First: Why Regulated Brokers Are Your Best Compass

Picture yourself on the brink of the expansive financial trading universe, poised and ready to jump. But what ensures your descent into this financial abyss is controlled and secure? The unspoken hero here is regulation. It serves as a safeguard, setting rules and standards that help you navigate the market with a greater sense of security and less risk of unforeseen losses.

Industry News

Obituary: Campbell Adams, founder of ParFX and Pure Digital, passes away

Campbell Adams’ pioneering spirit and his contributions to the development of the FX industry as well as the digital asset trading space will be remembered and valued by industry peers and the broader financial community.

Inside View

Will Europe lead the way in crypto derivatives market structure?

The envisioned future market structure aims to provide direct access to regulated venues, offering 24/7 trading, lower initial margin requirements, and efficient risk management through remote custody agreements. This model is not just about addressing the current challenges but is also geared towards leveraging the best practices from the crypto markets.