LoopFX operates a dark pool for foreign exchange that utilizes a PeerToBank matching protocol to facilitate large offsetting trades between asset managers and banks at mid-market rates. This approach mitigates information leakage and reduces execution costs, addressing the challenges of signaling risk and market impact in FX trading.
Funding
$6.3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
In foreign exchange (FX) trading, large transactions can suffer from information leakage, leading to signaling risk and adverse market impact, which increases execution costs for asset managers and banks. Existing FX execution methods often fail to provide a mechanism for matching large offsetting trades discreetly at mid-market rates.
Solution
LoopFX operates a dark pool that utilizes a PeerToBank matching protocol to facilitate large, offsetting FX trades between asset managers and banks. The platform allows participants to match trades at mid-market rates with zero information leakage, mitigating signaling risk and reducing market impact. By keeping banks central to the matching process, LoopFX integrates into the existing FX ecosystem, improving best execution processes for all participants. Asset managers can access LoopFX through existing workflows via integrations with platforms like FX Connect, while banks are compensated for providing liquidity within the dark pool.
Target Audience
LoopFX targets asset managers and banks involved in large-volume foreign exchange trading.
Features
- PeerToBank matching protocol for discreetly matching offsetting FX trades.
- Mid-market rate matching to reduce execution costs.
- Integration with existing trading platforms like FX Connect.
- Reduced signaling risk and market impact due to the dark pool's design.
- A new risk management outlet for both asset managers and banks.
- Open architecture for integration into existing trading workflows.