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

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). 

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.