Augmentum Fintech plc, a European publicly listed fintech fund, announced Tuesday a £2.6 million ($3.3 million) investment in LoopFX, a London-based foreign exchange (FX) trading platform.
LoopFX Secures Augmentum Backing, Aims to Reduce FX Trading Costs
LoopFX, which offers a unique matching solution for large spot FX trades, enables traders to match in real-time with other asset managers and banks at mid-market rates. The platform's technology aims to reduce trading costs and enhance best execution processes while minimizing information leakage.
Tim Levene, CEO of Augmentum Fintech , will join LoopFX's board following the investment. In a statement, Levene expressed optimism about the opportunity in the capital markets sector, saying, "We believe LoopFX offers a textbook example of a fintech operating in the capital markets in partnership with blue chip financial institutions."
LoopFX's board includes several industry veterans. John Sievwright, who previously served as Chief Operating Officer, International, at Merrill Lynch, holds the position of Chairman. The board also comprises Martin Gilbert, current Chairman of Revolut and Founder of Aberdeen Asset Management, as well as Ivan Ritossa, who formerly sat on the executive committee of Barclays Capital.
Augmentum's investment is expected to fuel LoopFX's growth as it continues to develop its new protocol in the FX market. The move aligns with Augmentum's strategy of investing in fast-growing fintech businesses that are disrupting the financial services sector.
“LoopFX brings efficiencies in trading and price discovery to the FX market, which in turn will help market participants comply with best execution requirements,” Levene concluded.
Peer-To-Bank
The investment comes on the heels of LoopFX's successful integration of its “Peer-To-Bank” matching technology into leading forex platforms, including State Street's FX Connect and FactSet's Portware.
According to the company, its products allow traders to identify large trades exceeding $10 million in real-time, facilitating matches with other buy-side institutions and providing banks with a "secure channel to display their market axes." The integration with State Street’s FX Connect occurred in September 2023.
As a result, LoopFX's functionality will be accessible through FX Connect, which is part of the GlobalLink suite of e-trading platforms, technology, and workflow solutions that automate the entire FX trading process.
Additionally, a collaboration with FactSet was established at the beginning of this year. LoopFX supports Portware, a multi-asset execution management system utilized by leading asset managers.
