The Digest | July 2024

• The Request for Quote (RFQ) mode is set to launch in the third quarter, making Finery Markets the first crypto ECN to offer a unique combination of order-based and quote-driven institutional liquidity.

• Nonco has been included in the list of liquidity providers on Finery Markets' crypto ECN

RFQ: new trading regime

Our team has been working tirelessly on a new feature called Request for Quote, or RFQ. We're expecting to roll this in the third quarter of 2024.

This means that users of Finery Markets will have a single access to different trading modes, tailored to meet all market requirements. Our infrastructure integrates solid order-based liquidity, accessible via Finery Markets ECN (FM Marketplace and FM Liquidity Match), and RFQ, which allows our clients to quickly get quotes and execute trades on the required asset quantity from institutional liquidity providers.

The Request for Quote function is a popular tool used in traditional financial markets, like bonds for example, and also in crypto trading markets. It's a powerful way to boost the effectiveness of your trading activities.

Here's how it works:

The RFQ (Request for Quote) trading mode enables liquidity takers to request quotes from multiple liquidity providers through a GUI or an API. This ensures transparency in pricing. As a result, they have the ability to compare prices between various liquidity providers, as well as between different trading modes, in order to select the best one.

RFQ is a great tool for trading large trades that could influence the market price or illiquid assets, where there's no continuous market.

This variety of trading modes will make Finery Markets the first digital assets trading infrastructure with a unique mix of order-based and quote-driven institutional liquidity. We're leading the pack, folks.

H1 2024 Crypto OTC Market Review

The Finery Markets team analyzed 2 million spot trades conducted by institutions through the infrastructure in the first half of 2024. The market data was sourced from a variety of market players, including liquidity providers, payment providers, brokers, over-the-counter desks, hedge funds, and custodians.

In the first half of 2024, the total volume of crypto spot transactions in the over-the-counter institutional market via Finery Markets Markets surged by 95% compared to the previous year. This significant increase was primarily due to the Bitcoin rally and the increased inflow into Exchange-Traded Funds (ETFs), which sparked greater institutional interest in crypto products. Ethereum also experienced an increase, with trading volumes rising by 32% in the first half of 2024 compared to the same period in 2023. The anticipated approval for Ethereum ETFs is expected to drive further institutional participation in the market. During the same period, crypto-to-crypto trades saw a 50% year-on-year increase, while crypto-to-fiat pairs decreased by 12% compared to the first half of 2023. As the interest in digital assets continues to grow, transactions involving stablecoins across all blockchains and layers have seen a remarkable 2.6 times increase year-on-year.

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Nonco has been added to the roster of LPs on the Finery Markets’ crypto ECN

Nonco, a leading digital assets firm, has partnered with Finery Markets to serve as a liquidity provider. As a market maker for leading cryptocurrencies and stablecoins, Nonco brings a wealth of expertise to the partnership. The firm managed to secure $10 million in seed funding in 2023, led by Valor Capital and Hack VC, and supported by other notable investors such as Morgan Creek Digital, CMCC, and Theta Capital. This financial backing highlights the industry's faith in Nonco's approach to institutional crypto trading.

This partnership underlines our dedication to enhancing our trading infrastructure with first-rate liquidity providers, thereby enabling over 100 global businesses to manage their digital assets efficiently. We offer a comprehensive range of trading tools that ensure robust risk management, optimal pricing, and flexible settlement options. This reinforces our role as a pivotal platform in the institutional crypto landscape.

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Would you like to understand more about market making in digital assets?

In the latest episode of  “The Flow”, our branded podcast dedicated to institutional crypto trading, we talked with to Keyrock CEO and co-founder Kevin de Patoul

The backbone of the crypto ecosystem is the infrastructure that allows for efficient market-making in digital asset markets. This infrastructure is vital in guaranteeing liquidity and stability. But this rapidly evolving space comes with its set of challenges, particularly in maintaining compliance and integrity. How can one navigate these waters? Will Keyrock be competing with Goldman Sachs, and why did they initially turn down 75% of clients? What does the future hold for market-making in both crypto and traditional financial assets? Our audience will get a richer grasp of the significance of M. Lewis's "Flash Boys" and a counterpoint offered by Peter Kovac's “Flashboys. Not so fast.” We also tackled the pros and cons of exchanges using cloud-based infrastructure and examined how crypto ETFs are affecting KeyRock's operations

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