Finery Markets Partners with Bequant to Simplify Institutional Crypto Trading

FM Liquidity Match, an OTC institutional crypto liquidity provider, has joined forces with Bequant, a crypto prime brokerage. Through the partnership, the service will cover over 150 crypto-to-crypto and fiat-to-crypto pairs.

Bequant Partners With Finery Markets

Launched by Finery Markets in April 2023, FM Liquidity Match is a service designed to facilitate institutional market participants and crypto enterprises with access to over-the-counter (OTC) institutional crypto liquidity. It offers a multitude of tools and services that streamline institutional crypto transactions and enhance trading activity tracking.

Bequant, leveraging its extensive client network, is set to utilize FM Liquidity Match's advanced technology and liquidity. This partnership will allow Bequant to expand its offerings, adding OTC liquidity to its current prime brokerage services.

George Zarya, the Founder and CEO of Bequant, expressed excitement about the partnership. He highlighted that the union combines the best elements of FX trading infrastructure, adapting it to the realm of crypto.

"This partnership is a testament to our commitment to delivering innovative solutions that meet the evolving needs of our clients," Zarya commented.

The introduction of this service comes amid an industry-wide expectation for institutional market players to move towards using prime-brokerage services. FM Liquidity Match's technology will facilitate companies planning to launch or expand their OTC prime brokerage.

FM Liquidity Match Wants to Boost Institutional Crypto Trading

Konstantin Shulga, the CEO and Co-Founder of Finery Markets, explained that FM Liquidity Match was developed with a clear focus on clients' needs. The service aims to revolutionize institutional crypto trading by offering a risk-managed approach, compliant reporting, and post-trade flexibility.

"We are absolutely confident that we can help Bequant further boost its digital assets prime brokerage services," Shulga commented. "Additionally, Bequant can leverage our cutting-edge technology to internalize customer flows, resell global inter-dealer liquidity to their customers, or even create their own ECN."

3/ Bequant will now utilize FM Liquidity Match technology and liquidity, leveraging its client relationships to offer an OTC prime brokerage service, ensuring it is able to expand its product portfolio and add OTC liquidity to its current prime brokerage services.

Since its establishment in 2019, Finery Markets has acted as an OTC multi-dealer non-custodial marketplace for institutional customers and a trading solutions provider for crypto markets. Bequant, on the other hand, is a comprehensive platform for professional digital asset investors and institutions, providing services such as prime brokerage and exchange.

Bequant was acquired by CrossTower, a New York-based crypto exchange, in November 2022. Additionally, the company introduced its prime brokerage service for digital assets in 2020 as a response to the increasing demands of institutional players.

Liquidity Issues in Crypto Space

Large-volume trading on a single exchange can present liquidity challenges for financial institutions. As revealed in the Crypto Trading Report for 2020 by PWC Switzerland and Finery Markets, more than half of the institutional cases typically involve trading digital assets across five or more exchanges to circumvent potential liquidity risks.

However, the process of examining the API of each trading platform, maintaining associated technical support, and managing cash balances across each exchange can be a remarkably time-consuming process for institutions.

Financial companies have demonstrated an increasing preference for executing trades OTC instead of centralized exchanges in recent years. OTC trading offers a more comprehensive selection of options than its centralized counterparts. It facilitates trade execution between two parties either via voice or electronically. This approach affords investors privacy and liquidity access beyond the traditional market limitations.

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Hidden Road and Finery Markets Collaborate to Introduce Advanced OTC Liquidity Pool

Toenhance the institutional trading experience in the crypto space, FineryMarkets, a non-custodial crypto Electronic Communication Network andtrading infrastructure provider for institutional players, has officiallyentered into a partnership with Hidden Road Partners. This collaboration ismarked by the integration of Finery Markets' flagship solution, FM LiquidityMatch, into the operations of Hidden Road, a prime broker for crypto spottransactions.

InstitutionalShift: OTC Access in Crypto Trading

Theinstitutional participants have embraced the innovative FM Liquidity Match,which offers easy electronic access to robust institutional Over-The-Counter liquidity.

Thisensures a high-quality execution environment while safeguarding against toxicflow in crypto spot transactions. Hidden Road acts as a prime broker withinthis framework, overseeing efficient credit intermediation and post-tradesettlement for its clients engaging in crypto trades.

"Weare excited to announce that we have expanded our partnership with Hidden Road,a leading prime broker for digital assets. Through their role as a prime brokervia FM Liquidity Match, Hidden Road now offers their customers the first OTCtrading infrastructure that provides no last look execution for liquiditytakers, while also offering toxic flow protection for market makers, saidKonstantin Shulga, the Co-Founder and CEO of Finery Markets.

FMLiquidity Match Enhances Functionality

FMLiquidity Match presents a user-friendly interface, available through both aGraphical User Interface and Application Programming Interface, supportingprotocols such as FIX 4.4, REST, and WebSocket. The platform introducescutting-edge features that are poised to elevate the institutional tradingexperience to unprecedented levels.

Oneof the standout features of FM Liquidity Match is the provision for anonymoustrading within a firm liquidity pool, eliminating the concept of "lastlook" for liquidity takers and incorporating toxic flow protection formarket makers. This anonymity is coupled with a seamless electronic onboardingprocess, streamlining the experience for Hidden Road's clients. The platformfurther incorporates a role-based access system, ensuring secure and controlledparticipation.

Finery Markets has partnered with Hidden Road to launch an industry-first firm OTC liquidity pool with toxic flow protection. pic.twitter.com/iUg2Tpkfxu

Tofortify risk management, FM Liquidity Match integrates pre-trade riskmanagement controls with customizable risk limits, offering participants theflexibility to tailor their risk exposure according to their specificpreferences and strategies. Additionally, the platform supports flexiblepost-trade settlement options and adheres to travel-rule compliant reporting,meeting regulatory standards in the rapidly evolving crypto landscape.

HiddenRoad is committed to offering our clients a comprehensive range of tools, boththrough our own products and in collaboration with trusted partners. We arepleased to announce that Finery Markets' venue has joined our list of executionvenues, extending Hidden Road's credit network and OTC prime brokerageoffering."

"This partnership exemplifies our dedication to empowering clients toselect their preferred price discovery centers and liquidity solutions. Webelieve that Finery Markets unique offering is a valuable addition to ournetwork, Michael Higgins, the Global Head of Business Development at Hidden Road, said.

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