LoopFX to launch P2P trading venue for large spot FX trades in H2 2023

Rick Steves

“This is the first time a venue has developed a means of safely allowing market participants to tap the holy grail of the Peer-To-Peer market in FX, without disenfranchising the sellside.”

LoopFX has announced the pilot phase of its peer-to-peer foreign exchange trading venue designed for large spot FX trades and offering improved execution outcomes by centralizing P2P buyside matching with bank interest.

The startup, which is backed by John Sievwright, Ivan Ritossa, Mike Soutar, Tim Ewington, and Martin Gilbert, will enter the pilot phase in December 2022, with full launch in the second half of 2023.

Optimum counterparty when executing large spot FX trades

LoopFX was founded by Blair Hawthorne, who is the firm’s CEO and is developing the P2P FX trading venue after a career as an FX trader, most recently at abrdn.

Blair Hawthorne, Founder and CEO of LoopFX said: “We are thrilled to be going live with our pilot launch which we believe will transform how large trades are executed. After months of speaking to more than 30 large financial institutions, and gaining significant expressions of interest, we believe we have the right solution to the problem of identifying, in real-time, the optimum counterparty when executing large spot FX trades. LoopFX improves both execution outcomes and Best Execution processes, a material improvement for all market participants.”

The management team includes three more co-founders: COO Simon Wilson-Taylor (formerly of State Street and UBS, and the CEO and Founder of Molten Markets), CCO Timothy Johnson (held senior roles in American Express, 360T and CME Group), CTO John Vause (formerly of State Street, Molten Markets and CME Group).

Tap the holy grail of the Peer-To-Peer market in FX

LoopFX aims to be the new liquidity venue for large spot FX trades by centralising Peer-To-Peer matching with bank interest.

The venue enables traders to identify, in real-time, matches of large trades in excess of $10 million with other buyside institutions, whilst providing banks a new means to safely show their market axes.

Matches through LoopFX will execute at an independent market mid-rate, meaning both risk and cost will be reduced. The new model is called Peer-To-Peer-To-Bank.

LoopFX is powered by a unique matching engine and is built as an open architecture technology that can be integrated into current workflows on existing trading platforms, with minimal changes to legal documentation.

LoopFX’s board includes John Sievwright, the former Chief Operating Officer, International, of Merrill Lynch, Ivan Ritossa, formerly an executive committee member of Barclays Capital and a foreign exchange leader, Mike Soutar who was most recently the CEO of the Evening Standard, Tim Ewington, an investor and strategist, and Martin Gilbert, currently Chairman of Revolut and the founder of Aberdeen Asset Management.

John Sievwright, Chairman of LoopFX said: “I’ve been working with Blair and his team since the early days of the LoopFX concept, so it was a natural step to become Chairman and a lead investor. The executive team is top class, combining years of trader expertise with a track record of developing and implementing significant digital innovation in finance. Added to that we have a strong Board, a diverse investor base, and a dynamic new technological solution which tackles a persistent problem in the foreign exchange market. I believe LoopFX has global potential.”

Ivan Ritossa, board member of LoopFX said: “It’s obvious that LoopFX will deliver significant benefits to the market as a whole. This is the first time a venue has developed a means of safely allowing market participants to tap the holy grail of the Peer-To-Peer market in FX, without disenfranchising the sellside. I know LoopFX will go from strength to strength as they move to full launch next year.”

Martin Gilbert, board member of LoopFX said: “LoopFX is a promising business with the right combination of technical understanding and excellent product and market fit in foreign exchange. I am delighted to be investing in Blair and the rest of his talented team.”

Read this next

Executive Moves

CMC Markets taps Finalto’s Julia Free to head UK compliance

CMC Markets PLC (LSE:CMCX) has onboarded Julia Free as its newest head of UK compliance as part of a broader organizational reshuffling at the UK’s biggest spread better.

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

<