Hidden Road Launches Synthetic PB Offering
Posted by Colin Lambert. Last updated: October 26, 2023
Credit network Hidden Road has launched Route28, a synthetic prime brokerage offering covering OTC Swaps across all major asset classes, including FX, equities, commodities, digital assets, energy and rates.
The new offering is run out of Hidden Road’s FCA-regulated UK entity, Hidden Road Partners CIV UK, with front-end and matching technology provided by Crossover Markets. With the launch, Hidden Road claims it becomes one of the few prime brokers globally to offer cross-margining and margin financing across cash/spot, cleared derivatives and OTC swaps products in all major asset classes. It adds the product was built in conjunction with major global hedge funds, brokers and principal market making firms.
“Route28 is a continuation of Hidden Road’s strategy to provide more efficient credit intermediation services,” says Michael Higgins, global head of business development at Hidden Road. The demand across the spectrum of FX, equities, commodities and digital assets has been building since we launched the firm. Bringing to market a synthetic prime brokerage offering – especially one without any clearing or technology fees–was an obvious extension our clients were looking for.”
Hidden Road says Route28’s launch is anchored by a number of the world’s largest market makers, proprietary trading firms, quantitative hedge funds, brokers, liquidity aggregators and technology providers and names several retail-orientated firms in Capital. Com, FXCM, Pepperstone, OneZero, Gold-i, PrimeXM and Argamon Markets as supporters.
“Hidden Road continues its mission to increase operating efficiency across the institutional landscape, and we are honoured to supply Crossx as the technology of choice for Route28,” says Brandon Mulvihill, co-founder and CEO of Crossover Markets. “Crossx was designed to operate 24/7/365 with speed and performance characteristics that rival any offering across any asset class. We believe speed and performance are fundamental in lowering the cost of trading. As a result, Route28 customers can enjoy competitive spreads across a wide range of products.”
Brendan Callen, CEO of FXCM, adds, “The launch of Route28 is another important step in the drive towards making the institutional trading landscape more efficient. Synthetic prime brokerage creates efficiencies from a balance sheet and funding perspective when compared to traditional financing and we look forward to bringing these advantages to our clients to help improve their trading experience.”
An “excited” Elan Bension, founder of Argamon Markets, observes, “Route28 allows us to consolidate our trading with a partner who is supported by the world’s leading market makers while cross-margining exposures across asset classes. This is the most innovative release in the prime space for decades.”