XTX Markets

Last updated

XTX Markets
IndustryElectronic liquidity provider
Founded30 January 2015 [1] [2] [3] [4]
Founder Alex Gerko [1] [2] [3] [4]
Headquarters
London [4]
Productsequities/foreign exchange/commodities/fixed income/derivatives [4]
Number of employees
190
Website XTX Markets

XTX Markets is an algorithmic trading company. It was founded in January 2015 by Alexander Gerko, who is currently co-CEO alongside Hans Buehler. [5] The company employs 190 people globally and uses algorithms to trade the difference in market prices across a variety of venues. [6]

Contents

History

The company is based in London, United Kingdom and was founded by Alexander Gerko in 2015, as a spin-off of GSA Capital. [7] [8] [9]

In 2016, XTX Markets was the ninth-largest liquidity provider in the foreign exchange market by volume; with a 3.87% market share. [10] [11] It was the first time a company that is not a bank placed in the top ten of the Euromoney survey. [12] [10] It is part of a trend of non-bank traders taking market share from banks. [13]

In 2017, the company became a non-clearing member of the London Stock Exchange. [14]

In 2018, it was the third-largest liquidity provider in the global foreign exchange market by volume; with a 7.36% market share. [10] [15] The company had 11.5% market share in European equity markets. [16] [17] Other activities included taking a stake in Aquis Exchange, [18] [19] [20] setting up a foreign exchange 'pricing engine' in Singapore in conjunction with the Monetary Authority of Singapore [21] [22] and announcing it would be opening an 'EU hub' in Paris. [23] [24]

In 2019, XTX became the largest foreign exchange spot liquidity provider globally. [25]

In 2022, the company reported profits of £1.1 billion, a 64 per cent increase on the previous year. [6] [26] It recorded a 68 per cent increase in revenues from £1.5 billion to £2.5 billion. [6] [26]

Operations

XTX is a quantitative-driven electronic liquidity provider which partners with counterparties, exchanges and e-trading venues globally to provide liquidity in the equity, foreign exchange, fixed income and commodity markets. [27] The company is majority owned by Gerko, who holds 75 per cent of business. [6]

In 2018, XTX decided to opt into the systematic internaliser regime for European equities. [28]

In November 2019, XTX became the largest systematic internaliser by volume for European equities. [29] XTX has since been the largest Systematic Internaliser for three years running. [30]

In 2019, the company grew its market share in the United States and expanded into providing liquidity in US Treasuries. [31]

In March 2021, the company began offering a single dealer platform for US equities. [32]

XTX Markets also launched a venture capital arm, XTX Ventures, a fund investing solely in early-stage companies with machine learning as a core technology. [33]

Philanthropy

In March 2020, XTX donated over £20 million to charities fighting the effects of COVID-19 including NHS Charities Together, City Harvest and the AP-HP hospital. [34]

XTX released a statement in March 2022 regarding its support for the Ukrainian people and all those affected by the Russian invasion of Ukraine. This included details around £23.4 million of commitments to charities providing humanitarian relief to Ukraine. [35]

In June 2022, XTX announced the launch of its £15 million Academic Sanctuaries Fund with the goal of helping deliver more and better academic sanctuary places for students and researchers who have been forced to flee due to the war in Ukraine, including for voicing their opposition to it, but have no alternatives. [36]

Related Research Articles

The Market Identifier Code (MIC) is a unique identification code used to identify securities trading exchanges, regulated and non-regulated trading markets. The MIC is a four alphanumeric character code, and is defined in ISO 10383 by the International Organization for Standardization (ISO). For example, the US NASDAQ market is identified by MIC code XNAS.

<span class="mw-page-title-main">DBFX</span> Deutsche Bank foreign exchange trading platform

dbFX was Deutsche Bank’s online margin foreign exchange trading platform and service for individual and institutional investors including financial institutions, hedge funds, corporations, asset managers, money managers, commodity trading advisors, broker-dealers, brokerage firms, high net worth individuals, and sophisticated and professional traders, which operated from 2006-2011.

High-frequency trading (HFT) is a type of algorithmic trading in finance characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons in trading securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second.

<span class="mw-page-title-main">Matchbook FX</span>

Matchbook FX was an internet-based electronic communication network for trading currency online in the Spot-FX or foreign exchange market. It operated between 1999 and 2002.

<span class="mw-page-title-main">City Index Group</span>

City Index is a global spread betting, FX and CFD Trading provider. City Index is part of the Nasdaq listed StoneX Group and is regulated by the Financial Conduct Authority in the UK, The Australian Services and Investment Commission in Australia and Monetary Authority of Singapore (MAS) in Singapore. The company has offices in the United Kingdom, Australia, and Singapore.

<span class="mw-page-title-main">CitiFX Pro</span> Online foreign exchange market trading platform

CitiFX Pro was Citigroup's online foreign exchange market trading platform for retail and small institutional traders including commodity trading advisors, broker-dealers, money managers, and hedge funds. CitiFX Pro discontinued offering services to clients in June 2015 and sold all U.S. accounts to FXCM, and international accounts to Saxo Bank.

<span class="mw-page-title-main">Virtu Financial</span> Financial services company

Virtu Financial is an American company that provides financial services, trading products and market making services. Virtu provides product suite including offerings in execution, liquidity sourcing, analytics, broker-neutral, multi-dealer platforms in workflow technology and two-sided quotations and trades in equities, commodities, currencies, options, fixed income, and other securities on over 230 exchanges, markets, and dark pools. Virtu uses proprietary technology to trade large volumes of securities. The company went public on the Nasdaq in 2015.

<span class="mw-page-title-main">Moscow Exchange</span> Stock exchange in Moscow, Russia

The Moscow Exchange is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, money markets, and precious metals. The Moscow Exchange also operates Russia's central securities depository, the National Settlement Depository (NSD), and the country's largest clearing service provider, the National Clearing Centre. The exchange was formed in 2011 in a merger of the Moscow Interbank Currency Exchange and the Russian Trading System.

Liquidnet is a global institutional investment network that connects asset managers with liquidity. Liquidnet trades in 46 equity markets for over 1000 institutional investment firms who collectively manage US$33 trillion in equity and fixed income assets.

Pipeline Trading Systems LLC operated private equities and options trading systems from 2004 to 2012. As an agency broker, it offered equities traders two methods for trading large blocks of stock with minimal impact on price: a crossing network, and an algorithm switching engine. In 2011, it agreed to settle the action brought by the Securities and Exchange Commission regarding the disclosure of the activities of its liquidity providing affiliate between 2004 and 2010.

<span class="mw-page-title-main">LMAX Group</span> Financial technology company

LMAX Group is a global financial technology company which operates multiple institutional execution venues for electronic foreign exchange (FX) and crypto currency trading. The Group's portfolio includes LMAX Exchange, LMAX Global and LMAX Digital.

IMC Financial Markets, sometimes referred to as IMC Trading, is a proprietary trading firm and market maker for various financial instruments listed on exchanges throughout the world. Founded in 1989 as International Market makers Combination, the company employs over 1100 people and has offices in Amsterdam, Chicago, Sydney, Hong Kong, Mumbai and other places.

<span class="mw-page-title-main">Jane Street Capital</span> Proprietary trading firm

Jane Street Capital, typically referred to as Jane Street, is a global proprietary trading firm. Jane Street Capital employs more than 2,000 people in five offices in New York, London, Hong Kong, Amsterdam, and Singapore. The firm trades a broad range of asset classes on more than 200 venues in 45 countries.

<span class="mw-page-title-main">Tradeweb</span> American financial services company

Tradeweb Markets Inc. (Tradeweb) is an international financial technology company that builds and operates electronic over-the-counter (OTC) marketplaces for trading fixed income products, ETFs, and derivatives. Its customers include banks, asset managers, central banks, pension funds and insurance companies. Tradeweb's headquarters are in New York City.

Optiver Holding B.V. is a proprietary trading firm and market maker for various exchange-listed financial instruments. Its name derives from the Dutch optieverhandelaar, or "option trader". The company is privately owned. Optiver trades listed derivatives, cash equities, exchange-traded funds, bonds, and foreign exchange.

Last look is a trading practice where the liquidity provider (LP) provides a quote rather than a firm price into the trading system or execution venue. Last look venues are often used to conduct trading on foreign exchange markets (FX) for retail foreign exchange trading.

MarketAxess Holdings Inc. (MarketAxess) is an international financial technology company that operates an electronic trading platform for the institutional credit markets, and also provides market data and post-trade services. It enables institutional investors and broker-dealers to trade credit instruments, including corporate bonds, and other types of fixed income products.

Flow Traders is a proprietary trading firm. A market maker, it provides liquidity in the securities market by using high frequency and quantitative trading strategies.

<span class="mw-page-title-main">Citadel Securities</span> American market making firm

Citadel Securities LLC is an American market making firm headquartered in Miami. It is one of the largest market makers in the world, and is active in more than 50 countries. It is the largest designated market maker on the New York Stock Exchange.

Global Trading Systems, which uses the trade name GTS, is an American proprietary trading and market making firm headquartered in New York. The firm accounts for 3 to 5 percent of the daily turnover of US equities and has handled over 250 IPO listings since 2013.

References

  1. 1 2 "Log In". lists.fnlondon.com. Retrieved 24 November 2018.
  2. 1 2 "XTX Markets - Mix Interiors". Mixinteriors.com. 18 April 2018. Retrieved 24 November 2018.
  3. 1 2 Finextra (2 October 2017). "XTX Markets to opt-in as a Systematic Internaliser under MiFID II". Finextra.com. Retrieved 24 November 2018.
  4. 1 2 3 4 Ltd., XTX Markets. "XTX Markets". www.xtxmarkets.com. Retrieved 24 November 2018.
  5. ↑ Arnab Shome. Finance Magnates reporter. (31 April 2023). "XTX Markets Promotes Dr. Hans Buehler to Co-CEO". Finance Magnates website Retrieved 18 April 2023.
  6. 1 2 3 4 Asgari, Nikou (17 July 2023). "XTX reports £1.1 billion of profits". Financial Times. Retrieved 17 July 2023.
  7. ↑ Agini, Samuel. "Trader XTX Markets picks Paris for post-Brexit EU hub". Fnlondon.com. Retrieved 24 November 2018.
  8. ↑ Agini, Samuel. "City heavyweights back Aquis Exchange IPO". Fnlondon.com. Retrieved 24 November 2018.
  9. ↑ "An exclusive look at XTX Markets' new London office is a glimpse of the workplace of the future — Quartz". qz.com. 20 February 2018.
  10. 1 2 3 "FX Survey 2016: Overall results". Euromoney. 25 May 2016. Retrieved 24 November 2018.
  11. ↑ "A Computerized Trader Just Beat Banks in Top Currency Ranks". Bloomberg.com. 25 May 2016. Retrieved 24 November 2018.
  12. ↑ McGeever, Jamie (25 May 2016). "Citi tops Euromoney global FX poll again, but big banks lose grip". Reuters.com. Retrieved 24 November 2018.
  13. ↑ Wilkes, Tommy (26 August 2023). "Newer firms muscle in on banks' forex territory". Uk.reuters.com.
  14. ↑ "London Stock Exchange welcomes XTX Markets". Lseg.com. Retrieved 24 November 2018.
  15. ↑ "JPMorgan Dethrones Citigroup to Become Biggest Currency Trader". Bloomberg.com. 30 May 2018. Retrieved 24 November 2018.
  16. ↑ "Instinet Adds XTX Markets To SI Liquidity Aggregation - Markets Media". Marketsmedia.com. 5 November 2018. Retrieved 24 November 2018.
  17. ↑ "Trading firm XTX picks Paris for post-Brexit EU hub". Reuters. 29 October 2018. Retrieved 24 November 2018.
  18. ↑ "Aquis Exchange PLC - London Stock Exchange". www.londonstockexchange.com. Retrieved 24 November 2018.
  19. ↑ "Aquis doubles market share after predatory HFT ban - The TRADE". Thetradenews.com. 1 March 2016. Retrieved 24 November 2018.
  20. ↑ "The Trade: Aquis to ban predatory HFTs - Aquis". Aquis.eu. 3 February 2016. Retrieved 24 November 2018.
  21. ↑ "London-based market maker first to establish FX trading engine in Singapore - The TRADE". Thetradenews.com. 24 May 2018. Retrieved 24 November 2018.
  22. ↑ "XTX Markets to be first liquidity provider to set up FX trading engine in Singapore". Institutionalassetmanager.co.uk. 24 May 2018. Retrieved 24 November 2018.
  23. ↑ "XTX Markets to set up Paris hub". Financial Times. Retrieved 24 November 2018.
  24. ↑ "Brexit : la plateforme de trading XTX Markets choisit Paris". Latribune.fr. 30 October 2018. Retrieved 24 November 2018.
  25. ↑ Euromoney magazine. (June 2019). "Euromoney FX Survey 2019 – results released". Euromoney website Retrieved 14 April 2021.
  26. 1 2 Chan, Jeremy. "XTX reports 64% profit surge". www.fnlondon.com. Retrieved 17 July 2023.
  27. ↑ Nessim Ait-Kacimi. Les Echos reporter. (6 May 2021). "XTX, le trader numéro 1 mondial des devises". Les Echos website Retrieved 10 May 2021.
  28. ↑ Markets Media. (10 October 2017). "XTX Markets to Opt In as a Systematic Internaliser". Markets Media website Retrieved 14 April 2021.
  29. ↑ Hayley McDowell. The Trade reporter. (21 November 2019). "XTX Markets overtakes Citadel Securities and Tower Research as largest ELP SI in Europe". The Trade website Retrieved 14 April 2021.
  30. ↑ Rosenblatt Securities. (December 2022). "European Equities - Systematic Internalisers". Rosenblatt website Retrieved 25 January 2023.
  31. ↑ Lananh Nguyen. Bloomberg reporter. (30 January 2019). "An Upstart Market Maker Is Looking to Ramp Up in U.S. Equities and Treasuries". Bloomberg website Retrieved 14 April 2021.
  32. ↑ Lananh Nguyen. Bloomberg reporter. (8 April 2021). "XTX Markets Opens U.S. Dark Pool After Growth in European Stocks". Yahoo Finance website Retrieved 8 April 2021.
  33. ↑ John Detrixhe. Quartz reporter. (30 October 2020). "An automated trading firm turns its machine learning expertise to venture capital investing". Yahoo Finance website Retrieved 25 January 2023.
  34. ↑ Hayley McDowell. The Trade reporter. (27 March 2020). "XTX Markets commits £20 million to charities fighting coronavirus". The Trade website Retrieved 14 April 2021.
  35. ↑ XTX website. (March 2022). XTX Markets website Retrieved 25 January 2023.
  36. ↑ XTX press release. (June 2022). XTX Markets website Retrieved 25 January 2023.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.