One Trading, a cryptocurrency exchange that spun off from Bitpanda earlier this year, is set to officially open a trading venue in the coming weeks.
The business was launched on the market this morning with an announcement promising that the FAST platform would be the “fastest place to trade digital assets.” In particular, One Trading claims that its matching and risk engine operates in less than a microsecond and allows users to perform more than 200 round trips of price discovery, order creation and cancellation before a single order is placed on an existing competing exchange. do.
Cloud services giant Amazon Web Services (AWS) independently tested the venue’s speeds and found that One Trading’s 112 microsecond round-trip speed was faster than the 126 microseconds provided by the London Stock Exchange Group’s Turquoise venue and CME’s global matching engine. It was found to be 1,000 times faster than According to today’s announcement.
“Our team has worked tirelessly to create a trading venue that redefines speed and efficiency. With FAST, we aim to provide our customers with an unparalleled advantage in the highly competitive world of cryptocurrency trading,” said Josh Barraclough, CEO of One Trading.
One Trading is also launching free trading on all cryptocurrency pairs to attract large institutional traders. It has applied for a MiFID II trading venue license in the European Union and plans to launch derivatives and structured products in due course.
Bitpanda Pro Spinoff
One Trading emerged after Bitpanda Pro, a unit of the Austrian exchange targeting institutional and professional cryptocurrency traders, exited its main business last June and raised €30 million in a Series A round led by Peter Thiel’s Valar Venture. It is run by Josh Barraclough, who oversaw Bitpanda Pro and was previously head of digital innovation at JPMorgan.
The startup, which currently has 34 employees, has been beta testing its platform with market makers in recent weeks. Once live, the location will be open to both institutional and retail customers, with colocation services also available for the former.
One Trading will enter the crowded market for cryptocurrency exchanges. According to its website, CoinMarketCap alone tracks 227 spot exchanges globally, with 24-hour trading volume reaching $434.34 billion.
Greg McLoughlin, head of strategy and growth at One Trading, hopes the focus on speed will prove to be a differentiator. “Given our price discovery and execution advantages over other venues, we believe we can become a central risk transfer venue for all major liquidity providers. Moreover, making trading free means that large institutions can trade the ax to risk at the lowest cost,” he told The Block.
“If you are an institution, you almost have a fiduciary responsibility to transact in our venue, given the costs and execution benefits. “Given the liquidity profile currently available, we expect significant depth and optimal pricing.”
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