Sydney-based prime-of-prime provider Invast Global today announced a partnership with Lucid Markets, a non-bank market maker and trader in the institutional FX market, whereby Invast Global clients will now have access to Lucid’s liquidity via its multi-asset prime services facility, PurePrime.
The partnership illustrates the rapidly growing stature of non-bank participants in the financial markets, as the banks continue to feel the effects of increasing regulatory constraints.
U.K.-based Lucid Markets has seen a stellar rise in its status in the traditionally bank-dominated field of price-making. Lucid was founded in 2009 by Matthew Wilhelm, the former head of FX algorithmic trading at Goldman Sachs and Dierk Reuter, the former head of FX algorithmic trading at Deutsche Bank, to operate as a specialist high-frequency trading firm, and has built out a market-making business to institutional clients since then.
Access to Non-Bank Liquidity
Traditionally, only the largest funds and institutions have been able to get access to the benefits provided by the non-bank market makers. This is because access has relied on the client having a tier one prime broker relationship.
High-frequency trading firms, such as Lucid, now offer their liquidity stream to a select range of FX clients, such as retail brokers, as an alternative form of liquidity to the banks.
By partnering with Lucid, Invast Global is playing a part in providing access to non-bank liquidity for clients who do not have a tier one prime broker.
The tie-up between Lucid Markets and Invast follows growing global demand for the PurePrime facility. Tailored for institutional clients, brokerages, hedge funds and sophisticated traders, PurePrime offers optimised FX and CFD liquidity via multiple trading GUIs or API, backed by three tier one prime brokers.
PurePrime now offers disclosed bank, non-bank and ECN liquidity from over 20 unique FX and metals liquidity providers.
Commenting on the partnership, Paul Lonsdale, Partner at Lucid Markets, said: “Lucid Markets is honoured to be chosen by Invast Global to help support their already award winning prime services facility.”
In line with the growing trend of non-bank liquidity providers, Invast Global also signed a deal last year with market maker, Citadel Securities, once again to offer clients deeper liquidity via its PurePrime facility, as reported by Finance Magnates.