Technology company LoopFX has announced that the pilot phase for its peer-to-peer foreign exchange (FX) trading venue will launch in December 2022. A full launch is planned for H2 2023.
LoopFX says that their platform will reduce both risk and cost for users, with its integration capabilities meaning that little legal documentation alteration will be required.
The company calls the platform a peer-to-peer-to-bank model, which allows traders to identify matches of trades with other buy-side firms and lets banks securely provide their market axes.
LoopFX will be able to match trades of more than US$10 million in real-time, at an independent market mid-rate.
Blair Hawthorne, founder and CEO of LoopFX, says: "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."
Ivan Ritossa, one of the company’s board members, comments: “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 peer-to-peer market in FX, without disenfranchising the sell-side. I know LoopFX will go from strength to strength as they move to full launch next year.”
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