The UK arm of LandFX has just launched a new institutional offering to the market. The FCA regulated subsidiary of the company is launching the Land-Liqudity website, which is focused on providing institutional liquidity for FX, CFDs, metals and commodities.
The company acquired its FCA license late last year, enabling it to operate across the European Union under the supervision of probably the most trusted regulatory authority in the industry. The initial focus of the UK subsidiary of Land-FX was the expansion of its retail business, with 2017 becoming the unaugural year for the firm’s institutional offering.
Land-Liquidity is aiming to fill the gap between clients and prime brokers that require a substantial amount of capital to provide an institutional level of liquidity.
The firm shared with Finance Magnates that one of the reasons for the launch of the institutional business arm of the company is the recent changes in the regulatory environment. According to the firm, the retail FX market in Europe is becoming relatively unattractive for the brokers, which is why the company is looking into new opportunities in the wholesale liquidity and clearing market.
Commenting on the announcement, the CEO of Land-Liqudity, Sean Park, said: “While we were looking for counterparts to hedge our risk with multiple liquidity providers, we realized it was not very efficient as everyone has the same hybrid business model where they selectively hedge their trades depending on their own opaque criteria.”
“With our bridge technology, experience and the network within the industry, I felt confident we could do better than others,” he explained.
Land-Liqudity is partnering with Tier 1 banks and non-bank liquidity providers. Looking at the major prime brokers in the industry, the firm has access to feeds from Citi, Deutsche Bank, Barclays, Morgan Stanley, JPMorgan, Nomura, Goldman Sachs, Credit Suisse, UBS, BNP Paribas, HSBC, RBS, Commerzbank, ANZ, RBC and State Street.
The company’s strategy is to focus on enhanced spreads, quality of execution, global locations and transparency of execution which shows the clients where have their trades been cleared.
The eFX Sales Manager of Land-Liquidity, Diana Alazova, said: “We are thrilled to unveil our clearing solution. Land-Liquidity provides clients with access to multiple trading venues, allowing for direct relationships between traders and liquidity management experts at each ECN provider.”
Land-Liquidity starts its operations with low latency servers located at the LD4 and TY3 data centers of Equinix in London and Tokyo, focusing on clients in Europe and Asia.