FX HedgePool Reaches New Milestone, Matching $200 Billion on Memorial Day
NEW YORK, LONDON; June 22, 2021 – FX HedgePool, the matching engine for mid-market execution of FX swaps, exceeded $200 billion in matched notional volume across a range of G10 currencies on Memorial Day.
On May 31, 2021, many index tracking managers faced a multitude of risks by forcing currency valuations into US and UK public holidays, where liquidity was constrained, and spreads were significantly wider than normal market conditions. However, by creating a stable community of members with naturally offsetting positions, FX HedgePool enabled its members to source liquidity from each other. Thus, eliminating the need for trades to be priced in the market - safeguarding investor performance no matter the market conditions, liquidity constraints and public holidays.
“Although the FX basis market remained stable on the public holiday, market makers preferred to hold overnight risk in an attempt to clear in more liquid environments,” said James Davison, Americas Distribution at FX HedgePool. “However, this requires dealers to charge a risk premium in the form of wider spreads which results in degraded performance for the global asset management community.”
“Ultimately, it comes down to performance,” added Jay Moore, CEO and Founder of FX HedgePool. “We have created a model where market conditions don’t dictate the costs of trading. Instead, we offer reliable liquidity at known costs, which is what investors, like you and me, want.”
Early last year, FX HedgePool demonstrated its secure and dependable liquidity after seeing a surge in matched volumes as members looked to avoid the wider spreads demanded by the heightened volatility in the market.
Recently, FX HedgePool added a quarterly cycle in line with the standard IMM (International Monetary Market) maturity dates to its matching engine to address the problems of information leakage and market impact related to the disparate timing of buy-side trading during each IMM cycle.
About FX HedgePool
FX HedgePool is an award-winning matching engine for mid-market execution of FX swaps. that is transforming the market by separating liquidity from credit. This is unlocking vast potential for passive hedgers to provide liquidity to each other, while leveraging existing counterparty relationships for credit provision. Passive hedgers can now access a new source of safe and dependable liquidity, eliminating unnecessary friction for both the buy-side and sell-side. Founded in 2019 by FX industry and technology veterans, Jay Moore, Emin Tatosian and Richard Leader, FX HedgePool is redefining the FX swaps market.