MarketFactory is reshuffling its management team effective October 1, with current CEO being appointed executive chairman, a full time role, and Darren Jer taking over as CEO.
Darren Jer, CEO of MarketFactory, talks to Galen Stops about flash crashes, the new latency arms race and how technology will enable the FX market to keep growing in size.
Galen Stops: What’s going to be the main focus for MarketFactory as a company in 2017?
Darren Jer: Well let me just start by saying that FX is the biggest market that not everyone knows about. In the equities market last year, $114 trillion was traded across all exchanges; in FX, that figure is $1.4 quadrillion. In FX we talk in average daily volume (ADV) numbers all the time so we’re just used to the size of the market, $5.1 trillion per day, but the general public and traders in other asset classes don’t know the degree of notional liquidity.
Profit & Loss readers cast large numbers of votes this year for their preferred market makers and service providers.
Last year was the first that we changed the category description from banks to market makers to account for the larger proportion of non-banks that now comprise an important part of market making, and this is again reflected in the results. The industry’s changing dynamics are starting to show.
Voting, which spanned across time zones, was close in many categories, so we have listed the top three for each category to acknowledge the runners up.
Flow Traders, a Netherlands-based liquidity provider that specialises in exchange traded products (ETPs), is making a concerted push into the FX market, the firm has revealed today.
Flow Traders is partnering with MarketFactory to trade FX directly with investors across a number of different trading venues. In a release issued today the firms says that MarketFactory's API product, Whisperer, its “strategic ambitions” to become a leading liquidity provider in FX.
Flow Traders has long been active in the FX as part of its hedging strategies, but the firm claims that the current state of the FX industry provides an opportunity for it to further expand its role in this market.
MarketFactory has announced today that FX market participants will be able to use its API, Whisperer, to trade bitcoin futures on the CME when they launch on December 18.
Additionally, Whisperer provides access to Bitcoin market data.
“Our Whisperer API and connectivity solution simplifies and reduces our clients’ technical cost of entry to new currency markets, and with that in mind, we are pleased to announce that BTC futures are already available to trade via our CME integration,” says Matt Whitaker, director of product management at MarketFactory.
MarketFactory has added Moscow Exchange Moex) to its API connectivity solution. This addition now provides FX market participants using Whisperer access to 77 FX venues, the firm says.
By adding Moex as a venue, market participants can easily trade the Russian ruble without having to allocate scarce credit lines to hedge the RUB. Moex sees daily volume highs of up to $30 billion with international market participants accounting for approximately 40% of volumes in Russia. Additionally, trading with Moex provides market participants a cleared settlement model.
Al Crane has joined MarketFactory as director of sales, based in London.
Prior to joining MarketFactory, Crane most recently worked with SEB to help the Swedish bank prepare its FX business for MiFID II.
Before that, he worked as head of institutional sales for ADS Securities in London and spent five years in global e-FX sales at SEB.
Crane has also worked at Standard Chartered Bank, where he was the head of e-FX sales for Europe, Americas and Africa.
MarketFactory has released its new software product, Reflector, a pre-trade risk management service for banks, prime brokers and funds to help ensure trading limits are never broken.
The firm says that Reflector addresses the need for risk management software that eliminates installation for the client, works with any FIX API, and monitors and balances all limits and positions across all trading venues. Additionally, it checks all orders pre-trade with a latency impact under three microseconds 99.999% of the time and supports over 60 trading venues.
“Runaway algorithms or simply breaking a limit remain a major risk in an increasingly complex market,” says James Sinclair, executive chairman of MarketFactory. “We are very excited to see the positive impact that Reflector has for our customers. This includes both ensuring limits will be not be breached and allowing more efficient use of available credit.”
MarketFactory has hired Sophie Verdellet as an account manager.
Based in London, Verdellet will be responsible for account management and customer service in the EMEA region and will report directly to Al Crane, director of sales at MarketFactory.
Prior to joining MarketFactory, Verdellet worked in e-FX business development at Xenfin Capital where she was responsible for business development, project management, global e-FX sales and liquidity, and e-FX product management.
Before that, Verdellet served as head of support for e-FX sales and liquidity at Liquidity Pool. She began her career as a trading assistant at Mako Global, which was subsequently acquired by Xenfin Group. Verdellet later transitioned to head of support at the firm, and has nearly 10 years of experience in the foreign exchange industry.
MarketFactory has integrated its API, Whisperer, with Elysium Technology Group’s middle and back office product, Mission Control.
Whisperer is a low-latency API that connects traders to over 80 ECN, bank and non-bank FX venues for market data, trading and market making. Mission Control is a cloud-based enterprise solution that enables FX trading operations to automate and optimise middle and back office functions.
A global investment bank was the first customer to go live with the integration last month, says MarketFactory in a release issued today.
MarketFactory has secured a strategic investment from Accel-KKR, a technology-focused investment firm based in Silicon Valley with over $5 billion in capital commitment. In a release issued today, MarketFactory says the funding will accelerate its expansion into new markets and services for currency traders globally.“MarketFactory’s platform provides detailed data about the currency market that helps traders to innovate. We are very excited to find the right partner in Accel-KKR who understands the market structure importance of our business and growth trajectory,” says Darren Jer, CEO and co-founder of MarketFactory.