Financial technology firm LoopFX has launched its foreign exchange liquidity network, with several major institutions completing their first real trades through State Street's FX Connect platform.

LoopFX Goes Live on State Street's FX Platform

The new service allows banks and asset managers to trade currencies anonymously at mid-market rates, addressing a longstanding problem in the $7.5 trillion-per-day FX market where large orders can move prices before execution.

Schroders, RBC Capital Markets, Royal London Asset Management and State Street Investment Management are among the first clients to use the platform, which aims to reduce information leakage when executing substantial currency trades.

The platform works by matching opposing trades from different institutions without revealing identities or trading intentions. This approach helps prevent the price movements that typically occur when large FX orders hit the market.

"We have fully executed agreements across 15 asset managers and banks, with many set to match on Loop shortly," said Blair Hawthorne, CEO and founder of LoopFX. "We're especially grateful to State Street's FX Connect; their support and collaboration have been instrumental in enabling a smooth and timely rollout."

Greg Fortuna, head of GlobalLINK at State Street, added the integration "enhances our clients' ability to access mid-market liquidity efficiently and securely."

Early Adopters See Value in Dark Pool Approach

Several institutional clients have commented on the platform's potential to improve execution quality. Gordon Noonan, head of FX trading at Schroders, noted the collaborative nature of the solution.

"It's great to see both banks and asset managers engaging early with a solution like LoopFX," Noonan said. "The ability to match offsetting interest at mid, with minimal market impact, is valuable."

Royal London Asset Management's Mark Jenkins described LoopFX as "a sensible step forward" that provides "another way to access liquidity without broadcasting our intent."

In February, LoopFX also partnered with FlexTrade to help the firm's clients execute large FX trades with reduced market impact.

Well-Funded Startup Targets Institutional Market

LoopFX received £2.6 million in funding from Augmentum Fintech Plc and appointed a board of directors. The company is chaired by John Sievwright, who also chairs litigation funder Burford and sits on fintech Revolut's board.

Other board members include Martin Gilbert, Revolut's chairman and founder of Aberdeen Asset Management, and Tim Levene, CEO of Augmentum Fintech.

The company's founding team includes executives with experience at major financial institutions, including Aberdeen, CME Group, and State Street.

Neil McClements from RBC Capital Markets said the bank is "delighted to partner with LoopFX to bring our clients enhanced liquidity in the FX dark pool space."

The launch comes as institutional investors increasingly seek ways to execute large trades without alerting other market participants, particularly in the highly liquid but transparent FX market.