LoopFX and FactSet Collaborate to Improve FX Trading Efficiency

<p>A peer-to-peer
(P2P) foreign exchange trading venue, LoopFX, announced plans to integrate its
matching engine technology into FactSet's Portware trading platform in early
2024. The solution primarily allows for the reduction of transaction costs for
transfers exceeding $10 million and accelerates the execution of orders.</p><p>LoopFX to Integrate into
FactSet's Portware Trading Platform</p><p>Portware, a
multi-asset execution management system used by leading asset managers, will
embed LoopFX's functionality directly into client workflows. This will give
Portware users easy access to LoopFX's pool of peer-to-peer and bank liquidity
for large spot FX trades.</p><p>"We
are delighted to partner with FactSet and bring the benefits of our <a href="https://www.financemagnates.com/terms/d/dark-pool/">dark pool</a>
matching engine to Portware's global client base," said Blair Hawthorne, the
Founder and CEO of <a href="https://www.financemagnates.com/tag/loopfx/" target="_blank" rel="follow">LoopFX</a>. "This integration will further expand access to
our anonymous midpoint liquidity."</p><p>LoopFX's
matching engine sources block liquidity and matches asset managers to banks at
the independent market mid-rate. This reduces trading costs and improves
execution for FX trades over $10 million.</p><p>"We
look forward to providing our clients with direct access to LoopFX's innovative
trading solutions within their existing Portware workflows," Chris Matsko,
the Head of FX Trading Services at FactSet, added. </p><p>Backed by
experienced industry executives, LoopFX serves both the buy-side and sell-side
by centralizing dark pool P2P matching with bank interest in a
"Peer-to-Bank" model. </p><p>For LoopFX,
this is another major integration <a href="https://www.financemagnates.com/institutional-forex/state-streets-fx-connect-to-integrate-loopfx/" target="_blank" rel="follow">following the September announcement by State
Street Corporation</a> that its FX Connect platform has partnered with the venue
for large spot foreign exchange trades.</p><p>P2P in Institutional Forex
Market </p><p>The trend
of executing FX trades directly between two entities, bypassing traditional
market routes, has gained traction over the past decade. <a href="https://www.financemagnates.com/institutional-forex/why-institutional-peer-to-peer-fx-may-finally-take-off/" target="_blank" rel="follow">This shift has
encouraged various platforms to incorporate P2P services</a>. </p><p>However, it
became apparent that even leading banks were matching only a small fraction of
their trades. Additionally, it was noted that clients prioritized favorable
pricing over the specifics of trade <a href="https://www.financemagnates.com/terms/e/execution/">execution</a>. This insight led prominent
providers to reevaluate and move away from P2P models.</p><p>Despite these
obstacles, LoopFX is trying to establish itself as a central hub for
substantial spot FX trades. LoopFX prides itself on a distinctive matching
engine, designed with an open architecture approach. This technology is
tailored to seamlessly integrate with existing trading platforms, ensuring
minimal disruption to current workflows and requiring only slight modifications
to legal documentation. </p><p>"Our
mission is to provide the means for all large orders to find matches with zero
market impact, which includes orders from banks and by default also from the
customers of those banks," said Hawtorne. "Doing this without
changing asset manager workflows or legal agreements removes a common pitfall
to wide scale adoption."</p><p>The
platform aims to change the way large FX trades are conducted by simplifying
and streamlining the process. The question is whether large
institutions will be interested.</p>

This article was written by Damian Chmiel at www.financemagnates.com.