A new company calling itself LoopFX (website: theloopfx.com) has announced the planned launch of a new institutional peer-to-peer FX spot market. The company plans to launch its pilot phase in December 2022, and to be operational at some point in 2023.
LoopFX said that it aims to be the new liquidity venue for large spot FX trades by centralising Peer-To-Peer matching with bank interest. LoopFX 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.
At the heart of LoopFX’s tech stack is a unique matching engine. Built as an open architecture technology, LoopFX will integrate 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.