Finery rolls out crypto OTC trading solution

Finery Markets has released FM Liquidity Match, a solution it claims is the “first-ever electronic OTC-as-a-service for digital assets”.

The firm says Floating Point Group will become the first user of the solution which is a ready-to-deploy trading solution with a proprietary matching engine that enables market players to launch a fully electronic OTC trading business and manage client relations throughout the entire trade cycle.

The solution operates through a sub-account model with a master account created by a broker, prime-broker, OTC-desk, or liquidity provider, which then creates multiple sub-accounts to serve its clients via GUI or API, Finery explains. Each sub-account functions as a separate trading account with its own balance, positions, and trading history. It operates within specific risk limits and settles with the master account. The master account manages user access, risk limits, position rollover, mark-ups and spreads across all sub-accounts.

It is available through a GUI or API (FIX 4.4, REST, or WebSocket), and includes a role-based access system; pre-trade risk management controls and account limits; post-trade settlement and travel-rule compliant reporting and firm liquidity across 12 providers with “no last look” execution.

“We believe that our platform is the future of institutional crypto trading,” says Konstantin Shulga, co-founder of Finery Markets. “Our team has been working hard to reimagine the way institutional crypto trading operates in the post-FTX era. Through our FM Liquidity Match, market professionals can provide their customers with a “no last look” trading model, ensuring the best execution. Thanks to the proprietary matching engine, market participants can even create their own ECN and customised liquidity pools, internalise customer flows, or simply resell global OTC liquidity to their end-customers.”

With the new solution Finery is clearly trying to tap into a noticeable trend in crypto markets since the latest Winter around the collapse of FTX and others – a shift to OTC market structures. This is a point made by Kevin March, co-founder of Floating Point Group, who says,

“With fully electronic OTC capabilities, we make a small step in the transition to a more mature market.”

Michael Rabkin, global head of business development at DV Chain, adds,

“It’s natural for newer asset classes to undergo a process of defragmentation facilitated by market structure elements like prime-brokerage services.”

See the article: https://thefullfx.com/finery-rolls-out-crypto-otc-trading-solution/