TP ICAP Gains UK Registration for Institutional Crypto Exchange

TP ICAP’s wholesale exchange for crypto assets, Fusion Digital Assets, has registered with the Financial Conduct Authority (FCA Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term), allowing the platform to operate in the United Kingdom.

Announced on Thursday, TP ICAP is yet to launch its crypto exchange services though it confirmed the upcoming services in mid-2021. It will cater to institutional market participants only and will be operated by Tullett Prebon (Europe) Limited.

“Despite growing demand from our traditional client base, until now, the wholesale digital assets market has lacked the credible infrastructure and assurance necessary for them to allocate capital. Fusion Digital Assets addresses this need,” said TP ICAP Group’s Co-Head of Digital Assets, Duncan Trenholme.

“Its distinct attributes – namely a segregated model, TP ICAP’s track record of operating venues, and our means to distribute – are well recognized and trusted by institutional market participants.”

An Institutional Platform

TP ICAP is using its proprietary OTC electronic platform, Fusion, which will offer non-custodial services for order matching and trade execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term with cryptocurrencies. In addition, it partnered with Fidelity Digital Assets for custodial services.

Known for being the largest inter-dealer broker, TP ICAP’s entry into the digital asset space would provide legitimacy in the crypto market when it is reeling with controversy. It gained the license when FTX, once a major cryptocurrency exchange, collapsed within days when the shady business practices of its Founder and former CEO, Sam Bankman-Fried, surfaced.

The extension of the FCA’s authority over the UK’s cryptocurrency market has mandated all crypto businesses operating in the country to register with the regulator. However, the registration process that started before the pandemic remains slow. FCA’s CEO, Nikhil Rathi, recently revealed that around 85 percent of crypto firms failed FCA’s registration process.

“Over time, we believe blockchain will lead to the tokenization of traditional asset classes. This will result in a more efficient, automated, and risk-mitigated trading and settlement process for financial markets. Fusion Digital Assets positions us well to grasp the opportunities that this change will bring,” Trenholme added.