“Crypto CFDs Are Very Popular Right Now:” CEO at Match-Prime Liquidity

“There are some new assets into play,” said Andreas Kapsos, CEO at Match-Prime Liquidity, when talking to Finance Magnates at iFX EXPO International 2024, adding that “the crypto CFD is one of them and ESG as well.”

“The CFDs on cryptos are very popular right now. For liquidity providers, it's something that they need to have under their belts. When they're penetrating new markets, there are new requests around these products.”

Although brokers do not usually share figures around crypto CFDs, Finance Magnates earlier exclusively reported that Axi handled US$16.7 billion in crypto CFDs trading volume last March. The figures stood at US$7.6 billion in January and US$10.4 billion in February.

“It's Always Good to Have a Backup”

Kapsos has been leading Match-Prime Liquidity for over the last four years. He is an experienced industry executive and has worked with companies like BrightFX Capital and CAPEX.com. At the iFX EXPO International, he also participated in a panel discussion on the future of liquidity providers.

Pointing at the necessity of one liquidity provider or multiple for a broker, he said: “I always recommend the clients to have more than one. At the end of the day, we want the best for the client, so the best for the client would be to have multiple liquidity providers.”

“However, it depends on the life cycle of the client,” Kapsos said, adding, “but I would definitely suggest having more than two or more than three sometimes. The reason is very obvious: when you have something so important in your business like liquidity, and if something goes wrong with one of your liquidity providers, it's always good to have a backup.”

“Further, it's also important to have an additional one because you can compare the services,” he added. “You have that leverage; you can compare what the prices are, and then you can get the best product for yourself.”

Match-Prime is headquartered in Cyprus and operates side-by-side with its sister brand, Match-Trade Technologies. Earlier this year, the two companies, under the same parent, opened a new joint office in Dubai to better engage with and support their growing client base in the MENA region.

The @iFXEXPO International doors are now officially closed!

A heartfelt thanks to everyone who visited us at booths #66 and #67.
We appreciate all the insightful conversations and the opportunity to connect with so many of you.

We look forward to continuing our conversations… pic.twitter.com/HKvis7QGis

— Match-Trade Technologies (@MatchTradeTech) June 20, 2024

“AI Helps Us Know Where the Needs Will Be”

While expansion is ongoing, even liquidity providers like Match-Prime are feeling the penetration of AI in their operations. Although the use of AI can be very different for liquidity providers, it cannot be ignored.

“We're just using a fraction of it,” Kapsos said about liquidity providers' use of AI. “How we're using it is obviously from the quality side. It helps us identify things, analyze things, and use data that we retrieve from everywhere by analyzing them the right way. It helps us again, I would say, in predictive analysis. Using AI, we can provide liquidity when needed in the best way possible.”

“Also, AI helps us know where the needs will be, when they will be, and how they will be. So again, although it's the beginning, we are already using AI and utilizing it in our businesses,” he added.

“The Entry Barriers Are High”

Highlighting the next trend in liquidity, Kapsos said: “I do see consolidations.”

“You see consolidations all the time. In order to run a very good liquidity business, you need to have a lot of components working correctly at the same time. So I'm sure a lot will make mistakes, and they won't even be able to meet and improve these components so they can survive,” he observed.

“However, there is always a market for newcomers to come if they do it the right way… But, the entry barriers are high as the standards are high. Now people know what they want. The traders and the brokers became more sophisticated. So it's challenging to enter this market,” Kapsos further explained.