Standard Chartered has bought an undisclosed stake in 24 Exchange, the OTC platform backed by Fastmatch founder Dmitri Galinov, as the UK lender seeks to build core pillars of growth across multiple asset classes.
As part of this strategic investment, Standard Chartered's global head of FX trading, Geoff Kot, will join 24 Exchange's board of directors. In terms of management structure, Galinov assumes the CEO role at 24 Exchange. In addition, he recruits Bridgewater Associates’ former executive Jason Woerz as the president and also added Paul Millward, ex-head of FX product strategy at Cboe Global Markets.
The multi-asset venue claims to offer institutional market participants a more cost-effective way to trade FX NDFs through eliminating market data fees. Ultimately, 24 Exchange plans to provide, following the roll-out, end-to-end processing, and workflow services across over the counter derivatives asset classes.
24 Exchange has already partnered with Standard Chartered Bank to offer a central prime broker clearing model that aims to lower margin costs for participants. Traditionally, FX prime brokers created a capital inflow through charging initial margins from their clients whilst they don’t post such margins to their execution brokers.
Redline adds 24 Exchange for NDF trading
The platform has completed the onboarding of several Liquidity providers streaming NDFs across all supported pairs, regardless of the underlying tenor, including those with non-standard maturities. Redline Trading Solutions, which provides market data and order execution systems for automated trading, also supports 24 Exchange for its InRush Ticker Plant and Order Execution Gateway.
24 Exchange plans to utilize the funds to further grow its reach and offering among institutional investors. Beyond NDFs, other FX derivatives, including swaps and underlying currencies, would be traded soon on the offshore OTC venue, as well as possible expansion into equities and fixed income.
Commenting on the news, Dmitri Galinov said: "We are very excited to receive investment from a bank with deep expertise and a robust network in emerging markets. Standard Chartered Bank has already proven to be a great strategic partner as our central clearer and trading participant. We look forward to expanding our partnership and to benefiting from Geoff's considerable experience, insights and counsel as a member of our Board."
Geoff Kot, Global Head FX trading for Standard Chartered, added: "We are excited about this strategic partnership at Standard Chartered, working with 24 Exchange to promote innovation and continued evolution in FX markets. Dmitri and his team have a wealth of experience in leveraging technology effectively across different asset classes, and this offering aligns with our strategy to continue to provide improved pricing and liquidity for our clients and counterparties. I look forward to working together as we develop this emerging market FX product."
