FX HedgePool Seeks True All-to-all FX Market with X•Bridge
Posted by Colin Lambert. Last updated: May 27, 2024
FX HedgePool has unveiled X•Bridge, a second service from the fintech that already provides a peer-to-peer matching service for FX swaps, that separates liquidity from credit across all FX markets.
According to the firm X•Bridge is “a groundbreaking liquidity and workflow solution that transforms how buy-side firms access FX liquidity”, as it introduces FX HedgePool’s proprietary credit model, which removes existing constraints around credit and broker access. It adds that the credit model has been fine-tuned since the start of 2024 in a pilot with five institutions.
Credit constraints continue to feature in the FX markets, albeit less so in spot, although FX HedgePool points out that account allocation complexities and limited LP relationships also play a role in creating obstacles for some buy-side firms when accessing liquidity. X•Bridge solves this by separating credit from liquidity, another methodology taken from the firm’s first platform, X•Match. Buy-side firms can use existing banking relationships to sponsor credit into other LP sources, including non-banks.
Users are also able to access algos and fixing orders, as well as the X•Match platform, via a host of OMS platforms, use their existing bilateral credit lines to book and settle trades independent from liquidity sources, and de-fragment orders. The latter allows users to deliver consistent execution, ensuring fair treatment across accounts, FX HedgePool says.
For the sell-side, FX HedgePool says X•Bridge enables LPs to reach a wider range of counterparties, deploy algos on the platforms and receive account-level allocations for voice and IB chat trades at zero brokerage cost. This enables the sell side to improve returns by optimising the counterparty mix, the firm adds.
“We are thrilled to introduce another game-changing solution in our pursuit of revolutionising the institutional FX landscape,” says Jay Moore, co-founder and CEO of FX HedgePool. “By liberating liquidity from traditional constraints, we empower all market participants with equal opportunities to trade effectively and competitively.”
Emin Tatosian, co-founder and CTO, at the firm, adds, “X•Bridge is the clearest expression yet of our pursuit to democratise liquidity provision in a true all-to-all market. By going live with the first version in just four weeks and rapidly adding new capabilities since, we have once again demonstrated our ability to innovate in weeks, not months and years.”