In response to increasing institutional focus on crypto trading, we have expanded our FX post-trade services, powered by Traiana and MarkitServ, to support trade capture, matching and allocation of crypto assets. This enhancement allows firms to bring the same transparency, risk management, and control to these new instruments that they apply to established asset classes.
Our enhanced service has support for the most heavily traded crypto assets including Bitcoin, Ether, LightCoin and USDC, along with other liquid coins as they are adopted by institutions. Support includes both Spot and OTC NDF (cash settled) instruments.
2021 saw widespread institutional focus on crypto trading, with corporates, hedge funds and major investment banks launching and expanding crypto initiatives. To date, however, many institutions have suffered from operational challenges as these new instruments are typically not integrated with existing risk and processing systems. This results in a heavy manual trade booking overhead, representing significant operational and financial risk in these fast-moving markets.
By bridging the new distributed ledger technology that underpins crypto assets with existing operational ecosystems, our new service helps customers overcome many of these challenges.
Using our network, firms trading crypto assets on electronic platforms, by voice, or by direct API are able to receive post-trade notification messages directly into their enterprise risk or front office systems via existing integrations, giving real-time visibility of exposures. Additionally, where firms rely on custodian or prime broker (PB) services, customers can also benefit from automated trade processing using our custodian and PB messaging, matching and allocation network.
As institutional crypto trading gains traction, we are actively working to increase the breadth of our crypto connectivity by integrating post trade notification feeds from the largest crypto liquidity providers.
Key benefits of our Service may include:
- Automated processing of Crypto assets via existing FX processes and systems, reducing manual overheads and operational risk
- Real-time visibility of Crypto exposures in existing risk systems, providing transparency and effective risk management in fast moving markets
- Increased certainty of settlement due to pre-settlement matching of trade level economics for PB and custodian flows