SFOX (San Francisco Open Exchange), a bitcoin and cryptocurrency prime broker, today unveiled its new crypto trading product built specifically for hedge funds and asset managers.
The broad suite of sophisticated trading and portfolio management services unveiled will allow hedge funds to execute sophisticated trading strategies at scale in a single platform.
“This first of its kind crypto trading platform is the right product at the right time as institutions of all kinds are rapidly transitioning to investing in digital currencies. The technical superiority and unmatched cryptocurrency liquidity at SFOX will bring the hedge fund industry the trading, reporting and compliance services institutions need to embrace cryptocurrency as a new asset class.”
– Chamath Palihapitiya, Founder and CEO of Social Capital, an investor in SFOX
Unlike typical exchanges, SFOX provides traders with a single destination for trading cryptocurrencies from the world’s foremost trading venues – including major exchanges, OTC brokers, market makers.
This access to all major trading platforms from a single destination gives hedge funds an edge across in pricing, enhanced access, and advanced security.
Aggregated liquidity of crypto on SFOX is so vast that a single $50 million trade of bitcoin would execute in milliseconds without moving the market – 10x more than any exchange.
The most powerful of the SFOX platform’s services are plug and play order types and execution algorithms that are tailored to meet the needs of any trading strategy.
More than a dozen order types can be utilized that provide traders with full control over how passively or aggressively to execute, how much information they are giving to the market, risk management, and price improvement, all of which result in higher returns and are available at no extra cost.
“As a former hedge fund manager, I can say that the platform we are introducing today is a total game-changer for funds that are either in crypto today or just beginning to embrace crypto trading. Hedge fund managers can focus on what they do best, trading, without having to worry about execution, scalability, capital efficiency, or any of their back-office reporting and operational requirements.”
– Jackson Finio, Head of Product at SFOX
Further, SFOX is also unveiling a proprietary Trade Cost Analysis (TCA) program that is integrated into its crypto trading platform and at no additional cost. TCA platforms for equity trading, for example, are limited solely to large firms that either build their own or acquire these services at a significant cost.
TCA capabilities also enable Funds to meet and implement the best price execution requirements. Funds currently must meet best price execution requirements in trading other equities to demonstrate to clients and regulators that firms are making their best effort to acquire assets for clients at the best price.
“We’ve built a platform that gives any hedge fund access to all the same tools and resources previously only accessible and available to the most well-resourced trading firms in the world and at no to low cost. We know that running a fund is hard. When a market and regulatory environment are already fragmented and constantly changing, it makes running a crypto fund even harder. We want to be an ally to every hedge fund embracing cryptocurrency investing and trading.”
– Akbar Thobhani, CEO and Co-Founder of SFOX
Hedge funds are SFOX’s fastest-growing trading segment, with an 18x increase in trading volume year over year. Hedge funds in particular are finding compelling opportunities that drove a 10x increase in the average volume per customer over the past year.
SFOX also offers flexible settlements, including instant settlement for pre-funded transactions and Post Trade Settlement (PTS), which allow hedge funds to avoid pre-funding using a line of credit with SFOX. With PTS, hedge funds can trade on credit and settle any outstanding amounts flexibly on a timeframe that suits a trader’s needs, ensuring they never miss an opportunity due to insufficient funds.
This full suite of new services on the SFOX platform now includes:
- Global liquidity = 10x deeper liquidity where it matters–within 1% of the mid-price
- Best price execution
- 18 customizable order types and execution algorithms
- Trade Cost Analytics
- Flexible settlement
- Multi-user accounts with customizable permissions
- Workflow automation for enhanced operational security
- Integrated reporting and tax solution