Earlier this year, it was announced that banks, brokers and hedge funds wanting to offer digital assets to their client base could partner with Market Synergy for institutional standard cryptocurrency connectivity and security and take a FIX feed or ISP link to Bitfinex’s digital asset gateway.
In this article we catch up with James Banister, CEO, Market Synergy and Paolo Ardoino, chief technology officer at Bitfinex to find out more about their joint offering, the up-take and their future plans.
1. Explain the partnership between Market Synergy and Bitfinex and how this benefits institutional firms?
James Banister: Market Synergy is a Swiss-based organisation which offers institutional standard cryptocurrency connectivity for banks, brokers and hedge funds. We were selected by Bitfinex, the world’s leading cryptocurrency trading platform, to build a bespoke network for them in order to address a gap in the market – the provision of robust, high performance connectivity for institutional clients.
Our network, which is hosted in a Swiss data centre in the heart of Crypto Valley, is highly secure, reliable and supported 24×7. We offer a FIX feed and ISP link to Bitfinex’s digital asset gateway, providing a simple, secure and effective way for traditional trading firms to diversify and provide their clients with opportunities to trade this increasingly popular asset class. We also offer colocation services to any Bitfinex institutional client.
As a result of our partnership, any institution wanting to trade cryptocurrencies can connect with Market Synergy and access a wide selection of digital assets.
2. How much interest has there been in your offering?
JB: We were pioneers in providing access to an easy, fast and cost-effective way for financial institutions to connect to a recognised exchange and trade digital assets and this has had global appeal. We have built an impressive worldwide client base including brokers, hedge funds, specialist crypto funds and professional traders. We have been live for under a year and have already exceeded our first year targets.
3. How have you ensured that your infrastructure is highly secure, robust and reliable?
JB: Market Synergy is part of the FXecosystem group of companies which also includes Bondecosytem. We have over a decade of experience in outsourced connectivity for institutional clients and have applied the same high standards to our digital asset infrastructure that we use in the FX and bond markets. Being secure, robust and reliable is a priority at all times. We have invested significantly in exceptional 24×7 monitoring.
4. Why was expanding into the institutional market such a key strategy for Bitfinex?
Paolo Ardoino: Bitfinex is an innovator, renowned for having the best technology, the best matching engine and the best UI in the crypto industry. We continually assess market opportunities and felt that, due to the immense institutional interest in cryptocurrency trading, there was a significant opportunity to become the market leading digital asset trading platform for institutional clients. Collaborating with Market Synergy was key in order to provide speed and security across our platform to the standards expected by large financial institutions.
We understand the requirements of the institutional sector and have built our offering to meet these needs – such as developing a set of APIs that are familiar to institutional investors.
5. How has your offering evolved?
PA: We have extended our product range with Market Synergy to give professional clients the option of accessing a cloud-based VPS (virtual private server) with built in connections to Bitfinex. This means that we now have an institutional offering for clients wanting a dedicated server and connections as well as a VPS offering for those who don’t want to deploy their own servers but still require a low latency and strong network security. We can meet the differing needs of organisations, institutions and professional traders whilst also providing the most innovative and robust institutional-grade solutions in the market.
6. What are your future plans?
PA: We are working towards building something that can provide the type of trading architecture that traditional finance requires. We will shortly be announcing new, dedicated software relating to pricing information for co-located customers, which has been created to the standard expected by large financial institutions.
There is increasing demand from banks, brokers and hedge funds wanting to offer digital assets to their clients and we will continue to invest in our infrastructure and evolve our institutional-calibre offering in order to lead the market worldwide.