Floating Point Group Integrates ML Tech for Offering Algo Trading Strategies

<p>Floating Point Group, which operates a <a href="https://www.financemagnates.com/institutional-forex/hidden-road-introduces-otc-prime-brokerage-for-crypto/" target="_blank">cryptocurrency prime brokerage</a>, announced its partnership with ML Tech, a non-custodial investment management and trading platform. With this, customers of FlowVault will receive access and monitoring of ML Tech's Algorithmic Trading Strategies.</p><p>FlowVault is Floating Point Group’s cryptocurrency settlement and transfer platform for exchange-based trading. According to the company, its platform offers lower trading fees and broad access to exchanges. It focuses on <a href="https://www.financemagnates.com/terms/a/automation/" target="_blank" id="48647bf0-73a6-4062-b1ba-1efc11370ba3_1" class="terms__secondary-term">automation</a> and scale, offering traders direct access to the exchange’s API.</p><p>The integration of ML Tech is going to enhance the services of Floating Point Group. ML Tech, with its separately managed account (SMA) model, also covers pre-trade/post-trade <a href="https://www.financemagnates.com/terms/r/risk-management/" target="_blank" id="aedb745c-adf9-415f-97e2-ee56a920f0f8_1" class="terms__main-term">risk management</a> with round-the-clock alerting and monitoring.</p><p>“Institutional investors are looking for new sources of uncorrelated alpha in crypto markets,” Leo Mindyuk, the Co-Founder of ML Tech, said in a statement.</p><p>“Our partnership with <a href="https://www.financemagnates.com/cryptocurrency/coins/floating-point-group-taps-usdc-on-algorand-for-faster-transactions/" target="_blank">Floating Point Group</a> provides investors access to a curated selection of institutional-quality quantitative trading strategies managed by ML Tech within a secure FlowVault environment. With a number of trading strategies ranging from Delta Neutral Basis and Calendar arbitrage to Market Neutral Statistical arbitrage, investors can choose strategies that fit their risk/return appetite and deploy them directly via FlowVault.”</p><p>A Regulated Crypto Prime Broker</p><p>Based in New York, Floating Point Group leverages smart order routing to provide a “single point of access to digital currency markets.” It is regulated in the United States and holds a <a href="https://www.financemagnates.com/fintech/crypto-banking-startup-bvnk-receives-vasp-registration-in-spain/" target="_blank">VASP registration</a> in the Cayman Islands.</p><p>The startup raised $10 million in a Series A funding round last year in September from an array of venture capitals, including Tribe Capital, Coinbase Ventures, and several others. Before that, it scored $2 million from venture capital firms, serial angel investor Naval Ravikant, and many mainstream financial institutions.</p><p>Meanwhile, Floating Point Group is strengthening its leadership with the onboarding of industry experts. It hired former Fireblocks executive, Chris Hazelton recently as Director of Marketing, only a month after onboarding Peter Eliades, a former JPMorgan and Wells Fargo executive, as the Head of Distribution.</p> This article was written by Arnab Shome at www.financemagnates.com.

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Crypto Lending Platform Nexo Launches Prime Brokerage Services

Nexo, a London-based regulated financial institution for digital assets, has launched Nexo Prime, its proprietary prime brokerage platform targeted at institutional, corporate, and high-net-worth i...

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Gemini Acquires Omniex to Introduce Prime Brokerage Services

On January 19, Gemini cryptocurrency exchange based in New York, announced that it acquired Omniex trading technology platform to provide more institutional services to its clients.

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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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