State Street’s FX Connect to integrate LoopFX, the pioneer of Peer-To-Peer-To-Bank
LoopFX is pioneering a novel liquidity venue for large spot FX trades by centralizing peer-to-peer matching alongside bank interest. This innovative approach empowers traders using FX Connect to identify real-time matches for trades exceeding $10 million with other buyside institutions. It also offers banks a secure channel to showcase their market axes.
State Street Corporation has announced a strategic collaboration between FX Connect, a key component of the GlobalLink suite of e-trading platforms, and LoopFX.
This partnership aims to enhance the trading experience for institutional investors by integrating LoopFX’s innovative functionality into the FX Connect platform.
Integrating the Loop FX platform into existing FX Connect workflows later this year
FX Connect, a renowned FX execution venue with over two decades of market leadership, has consistently embraced new technologies and services to better serve its customers. The collaboration with LoopFX aligns with this commitment to providing clients with cutting-edge solutions.
Kate Lowe, Head of GlobalLink FX for State Street, said: “For more than 20 years, FX Connect has shown its willingness to adopt new approaches and work with distinctive new services we are confident will benefit our customers. LoopFX fits well with our philosophy, and we look forward to seamlessly integrating the Loop FX platform into existing FX Connect workflows later this year.”
LoopFX is pioneering a novel liquidity venue for large spot FX trades by centralizing peer-to-peer matching alongside bank interest. This innovative approach empowers traders using FX Connect to identify real-time matches for trades exceeding $10 million with other buyside institutions. It also offers banks a secure channel to showcase their market axes.
LoopFX’s open architecture makes it compatible with existing platforms and workflows
LoopFX’s technology is designed with open architecture, ensuring compatibility with existing trading platforms and workflows. The integration with FX Connect represents a significant milestone for LoopFX, marking its first major integration with an FX trading platform.
Blair Hawthorne, Founder and CEO of LoopFX, commented: “As a trader myself, I know what a valuable platform FX Connect is for practitioners, and I could not be more thrilled to be working with the FX Connect team.”
This strategic partnership between FX Connect and LoopFX signifies a commitment to advancing the capabilities and offerings available to institutional investors in the FX market. By providing real-time matching and secure access to bank market axes, the collaboration aims to optimize trading efficiency and transparency for users of FX Connect.
LoopFX, the pioneer of Peer-To-Peer-To-Bank
It was in November 2022 that LoopFX 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 buy-side matching with bank interest.
The startup, which is backed by John Sievwright, Ivan Ritossa, Mike Soutar, Tim Ewington, and Martin Gilbert, entered the pilot phase in December 2022. 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.
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).
LoopFX aims to be the new liquidity venue for large spot FX trades by centralizing 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.
