OTC Exchange Network Welcomes DMALINK into Early Adopter Program

According to its website, OTCXN is the “World’s First P2P Trading Network allowing any market participant to trade with any other without credit and without counterparty risk.” In an interview with Finance Magnates’ Avi Mizrahi, OTCXN CEO Rosario M. Ingargiola said that OTCXN aims to fill the credit gap in the FX base, providing a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-based “technology solution that makes it possible for anybody to trade really anything (starting, obviously, with FX) without anybody else without having to have prime brokerage involved as a requirement.”

The London-based FX market, DMALINK, is one of the first to have joined OTCXN as a provider of Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term. “We are very excited to add DMALINK to our growing list of early adopters, which represent leading firms spanning all types of FX market participants,” said OTCXN's Ingargiola.

Blockchain Symbiosis

DMALINK is a self-described “independent electronic trading venue for professional foreign exchange traders” that has a special focus on emerging currencies. Along with liquidity management, DMALINK also provides its clients with access to custom pricing of majors, minors, and precious metals.

The FX company seems similarly excited to enter into the partnership. Under the terms of the partnership, OTCXN’s clearing services will be used to power DMALINK’s ECN (Electronic Communication Network).

The Companies See a Win for Themselves and Clients

Michael Siwek, a founding partner and the Global Head of Sales at DMALINK, OTCXN’s “business model comes at a time of dire need.” He said that OTCXN’s “Early Adopter Program will enable us to materially impact and shape the dynamics and functionality of the OTCXN ecosystem for the benefit of buy and sell-side FX market participants.”

Ingargiola added that “DMALINK is a prime example of an ECN who will benefit from being able to directly onboard and face clients who can’t secure Prime Broker credit, with no credit intermediary and no counterparty risk.”

Ashwind Soonarane, Managing Partner and Global Head of Liquidity Management at DMALINK, also noted that the use of a blockchain-based solution in this particular space may be particularly well-suited to address long-standing issues in the FX market: “Scalability, time-to-market, pre-trade, post-trade, counterparty risk and clearing within a fragmented credit intermediation space.”

This is just one in the series of blockchain-based partnerships that have been appearing with increasing frequency over the past year. Hopefully, companies and their clients will continue to benefit from these arrangements as blockchain continues to make moves into mainstream fintech.