BST Awards 2021: Best buy-side execution venue & best buy-side newcomer (vendor or product)—FX HedgePool

- By Buy-Side Technology Awards
- 04 Nov 2021

OVERVIEW

FX HedgePool is the name of a New York-based fintech firm and its flagship offering, an FX matching platform designed to allow institutional investors to trade directly with each other.

Typical user-firms: small, mid-size and large asset managers/pension funds and credit-providing banks.

The business has grown from three partners to 16 since its inception, with coverage in Australia, Los Angeles, New York, London and Boston.

It supported over $71 billion in March 2020 (over 14,000% growth since January 2020).

“FX HedgePool is the disruptor the FX trading world has been waiting for. Peer-to-peer matching is a concept the market has danced around for years and is finally delivered by the team behind HedgePool; they have changed the game of FX swaps trading. The product continues to evolve, and importantly, client feedback is always well-received and enhancements quickly put in place. This team and their product have been a joy to work with.”
Alexcia Mazahreh, FX trader, Vanguard

WHAT’S NEW

In March 2021, FX HedgePool completed its first rolls aligned with the heavily-used quarterly International Monetary Market dates, increasing the number of discrete liquidity events per year from 12 to 16. With the addition of mid-month matches during the second half of 2021, this figure will rise to 28. In April 2021, BestX integrated its FX transaction-cost analysis (TCA) solution with FX HedgePool to create TCA capabilities that support a flexible and repeatable execution process, in accordance with regulatory and general fiduciary requirements. Senior business development appointments over the last 12 months include BNY Mellon’s Jim Webb as EMEA distribution director, Barclays’ Judith Wheelan as senior business development consultant, and Citi’s James Davison as North American distribution director. The firm also appointed two further representatives in Europe and one in Asia-Pacific, establishing a presence in London and Australia.

WHAT’S TO COME

FX HedgePool plans to extend the currency pairs it offers on the platform, depending on client demand.

The firm will expand its technology and engineering team to develop new capabilities that enhance the platform’s client experience.

WHY THEY WON

FX HedgePool launched in 2020, intending to provide a transparent, safe and efficient peer-to-peer FX exchange. It has unbundled liquidity from credit, allowing buy-side firms to trade with each other directly, while the sell side can optimize its credit provision and reduce risk. Looking ahead, FX HedgePool will add more currency pairs to the platform based on client demand.

“FX HedgePool is creating a more accessible and open foreign exchange market by making trading as simple, transparent, risk-free and inclusive as possible, with technology and expertise that powers best execution for all participants. By automating the process of FX hedging through safe, efficient peer-to-peer exchange, we are removing the barriers to entry and promoting fair competition in the world’s largest financial marketplace. And with unnecessary costs caused by outdated market structure and technology eliminated, savings can be passed on to investors. This is a win-win for all participants.”
Jay Moore, founder and CEO, FX HedgePool

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe

You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.

You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@waterstechnology.com

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@waterstechnology.com