StoneX executes cash-settled BTC/USD swap for DriveWealth’s UK subsidiary

Rick Steves

“Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody.”

StoneX Markets LLC, a subsidiary of StoneX Group Inc., has successfully executed and settled its first cash-settled BTC/USD swap in a milestone for the company whose institutional FX division made USD cash-settled crypto swaps available for trading to institutional FX clients earlier this month.

The counterparty to the trade was one of StoneX’s institutional FX clients, London-based Liquidity Solutions Global, which is a subsidiary of DriveWealth Holdings and a liquidity provider to multiple cryptocurrency venues. DriveWealth is a pioneer in embedded investing and fractional shares. 

Eric Donovan, Global Head of Institutional FX at StoneX, commented: “As with any other asset class, investors need to connect to digital assets markets through a trusted partner who can secure best execution and meet their compliance and custody needs. Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody. As a result, many regulated institutions are looking to the swaps market as a cost-effective way to gain access to crypto price exposure without the regulatory burden, cost, and additional risks traditionally associated with spot crypto ownership.”

StoneX plans to rollout addition crypto products

The provider of execution, post-trade settlement, clearing and custody services across asset classes and markets now includes cash-settled BTC/USD swaps to compliment the company’s traditional institutional FX products, which include more than 40 currency trading pairs across major and emerging market currencies, forwards, non-deliverable forwards, and options.

StoneX caters to 52,000 commercial, institutional, and global payments clients, and 370,000 active retail accounts through its Forex.com & City Index brands.

The trading specialist has taken steps to enter the digital asset space and plans to rollout additional crypto products and services to both institutional and retail clients over the next year, the firm announced.

StoneX dumps legacy systems, deploys Chronicle’s FIX engine

StoneX has deployed Chronicle’s FIX engine to replace incumbent trading technology in order to enhance its equities trading performance.

The trading giant has selected Chronicle for its speed, flexibility, and reliability, according to Thomas Moore, Managing Director, Head of Equities Trading at StoneX.

The Chronicle FIX engine is said to meet “the most stringent performance and resilience requirements of many of the world’s leading FX banks”.

The solution powers trading with exceptional low latency, high throughput (c.1m messages per server/second), rule-based routing for ease of scalability, multi-level security and a robust design supporting uninterrupted trading, according to Chronicle.

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