FinTech fund Augmentum Fintech plc has made a £2.6 million investment into London-based LoopFX.
LoopFX is described as the new independent venue for large spot FX trades with a unique matching solution for market participants.
It enables traders to match, in real-time, with other asset managers and banks without information leakage and at a mid-market rate, reducing trading costs and improving best execution processes.
Augmentum is the first institutional investor in LoopFX and its investment follows the integration of LoopFX’s `Peer-To-Bank’ matching technology into leading forex platforms – State Street’s FX Connect and FactSet’s Portware. Augmentum CEO Tim Levene will be joining the LoopFX board.
This investment will allow LoopFX to accelerate its growth as it continues to build this new protocol in FX.
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“We are increasingly focusing on the opportunity in the capital markets space where we see a trend in incumbents opting to collaborate and partner with innovative early-stage companies,” said Tim Levene, CEO of Augmentum Fintech.
“We believe LoopFX offers a text-book example of a FinTech operating in the capital markets in partnership with blue chip financial institutions. LoopFX brings efficiencies in trading and price discovery to the FX market, which in turn will help market participants comply with best execution requirements.”