Standard Chartered Buys Stake in FX Platform ‘24 Exchange’
Standard Chartered has bought an undisclosed stake in 24 Exchange, the OTC platform backed by Fastmatch founder Dmitri Galinov, as the UK lender seeks to build core pillars of growth across multiple asset classes.
Part of this strategic investment, Standard Chartered’s global head of FX trading, Geoff Kot, will join 24 Exchange’s board of directors. In terms of management structure, Galinov assumes the CEO role at 24 Exchange. In addition, he recruits Bridgewater Associates’ former executive Jason Woerz as the president and also added Paul Millward, ex-head of FX product strategy at Cboe Global Markets.
The multi-asset venue claims to offer institutional market participants a more cost-effective way to trade FX NDFs through eliminating market data fees. Ultimately, 24 Exchange plans to provide, following the roll-out, end-to-end processing, and workflow services across over the counter derivatives asset classes.
24 Exchange has already partnered with Standard Chartered Bank to offer a central prime broker clearing model that aims to lower margin costs for participants. Traditionally, FX prime brokers created a capital inflow through charging initial margins from their clients whilst they don’t post such margins to their execution brokers.