Hidden Road brings prime brokerage to Enclave Markets’ anonymous crypto trading
“Typically, traders at competing firms avoid trading with one another to prevent potential front-running, exposure of trading strategies and general market impact. By integrating with Hidden Road, one of the world’s most esteemed liquidity and credit providers, its institutional clients using our FEX gain access to completely anonymous trading, which allows them to mitigate risk and get the most out of any investment opportunity.”
Enclave Markets has entered into a strategic partnership with Hidden Road that allows the latter’s counterparties to trade digital assets through its fully confidential and secure exchange.
Hidden Road is a global credit network for institutions that offers prime brokerage services to digital asset markets. The company’s counterparties can now enjoy access to Enclave Markets, which claims to be a fully encrypted exchange (FEX) that combines the best parts of centralized and decentralized finance.
Enclave’s encryption protects counterparties from front-running and information leakage
Enclave Markets is built entirely within a secure enclave that prevents exchange operators from reading order activity and secures assets using a mechanism that eliminates the possibility of a single point of failure. Its initial offering, Enclave Cross, gives users access to an institutional-grade, fully confidential trading platform that allows participants to trade blocks of digital assets at the given market price without significant market impact.
The fully encrypted exchange provides an anonymous trading environment where counterparties can transact with minimal slippage, negligible market impact, and decentralized custody, without a single controlling entity, Enclave states.
Enclave’s encryption protects counterparties from front-running and information leakage. This confidentiality greatly expands the number of viable counterparties, as no information regarding participants or their positions can escape the trading platform.
Hidden Road acts as a prime broker in OTC trading via Enclave Cross
Hidden Road will act as a prime broker for its counterparties who elect to trade via Enclave Markets, greatly increasing capital efficiency and ensuring that client assets never leave their prime broker of choice from order creation through settlement.
This initiative further improves capital efficiency and liquidity while empowering counterparties to custody and settle assets with their partner of choice at such a confidential trading venue.
Hidden Road facilitates trading bilaterally between market participants while giving counterparties full ownership over trading technology, liquidity, and custody.
At launch, the strategic partnership will allow counterparties that use Hidden Road as their prime broker to conduct OTC trading via Enclave Markets’ crossing network, Enclave Cross, with additional trading capabilities at a later date.
All trading activity and settlements made by Hidden Road as a prime broker over Enclave Cross are executed via direct transactions, ensuring assets are held by one of Enclave’s many trusted custodians.
“Institutional clients using our FEX gain access to completely anonymous trading”
David Wells, CEO of Enclave Markets, said: “Typically, traders at competing firms avoid trading with one another to prevent potential front-running, exposure of trading strategies and general market impact. By integrating with Hidden Road, one of the world’s most esteemed liquidity and credit providers, its institutional clients using our FEX gain access to completely anonymous trading, which allows them to mitigate risk and get the most out of any investment opportunity. To increase the adoption of digital assets, it is important that institutions have access to trading venues that they can trust, and this endorsement from Hidden Road demonstrates that Enclave does just that. We’re excited to work with Hidden Road to mature the trading landscape, something that’s been part of Enclave’s mission from the start.”
Michael Higgins, Global Head of Business Development at Hidden Road, commented: “Institutions expect robust, predictable trading experiences in any asset class, be it traditional or digital. Enclave’s novel, albeit familiar, approach offers Hidden Road counterparties a secure, anonymous and streamlined option for trading digital assets. Adding Enclave to the roster of venues and partners available to Hidden Road’s counterparties further enhances both firms’ offerings to the market.”
