Matt please tell us a little about Edgewater Markets and the range of products and services the firm provides.
Edgewater Markets is a leading technology provider offering access to the FX and precious metals markets globally, via best-of breed back to front end software solutions and superior execution services. Founded in 2009, Edgewater Markets has been a trusted provider of foreign exchange and precious metals services to over 350 global institutional clients, providing complete software solutions, API, GUI & White Label, for banks, asset managers, brokers, and other financial institutions to competitively and efficiently access and price into the FX global ecosystem. Utilizing the latest in technological advancements coupled with a flexible architectural design, Edgewater Markets has adapted proprietary technology to optimize trading and distribution for its clients.
Who are your clients and how geographically spread are they?
Our clients span the globe, as we are co-located in NY4, LD4, & TY3, and KIO5. With offices and staff on the ground in Singapore, London, New York, Mexico City, California, & Santiago Chile, each region covers its client base, which includes banks, hedge funds, pension funds, brokers, asset managers, and other financial institutions with best of breed/proprietary end to end technology solutions coupled with highly customized execution services.
What makes Edgewater Markets different from many of its competitors and what do you consider to be the outstanding strengths of the firm?
Edgewater Markets differs itself from the competition by providing both best of breed technology platforms, automated workflows, and execution services with no bias. Edgewater doesn’t monetize, trade against or model its clients in the execution of foreign exchange or precious metals.
We are a trusted partner to our clients and our main objective is to provide efficient and competitive market access. Edgewater is dedicated to bringing innovative technology solutions that enhance our client’s ability to trade highly fragmented FX markets more effectively than ever before. What this eventuates into is an aligned relationship with the client’s best interest always being the driving force of the relationship.
Before we drill down on other things let's quickly talk about COVID-19. How resilient has your business been during the current crisis and what impact has it had on the firm and your clients?
COVID-19, as it relates to Edgewater Markets, has shown the resilience of our technology to deliver to our clients systems that can be accessed at work, home office, or in a mobile format. While nobody was able to forecast the impact that COVID-19 would have on the world, Edgewater’s technology was built for ease of use in multiple locations without downloads. We found that in the early Spring, during the worst of the pandemic, our clients were able to fully access the markets quickly and seamlessly. Market participants were quickly migrating to their home offices, and while many technological hurdles were being overcome to simulate their at work stations, their ability to access the market via our technology was not a part of that challenge.
Many clients have provided us with feedback during the summer months that accessing the markets during the pandemic via Edgewater tech, allowed them to deploy their time and resources to other challenges. Naturally during the Spring and early Summer, Edgewater’s volumes surged, and much of that was made possible by the efficiency and stable tech our clients are provided with.
EdgeFX.Pro, is your proprietary, ultra-low latency trading platform. Why is it so game changing and what key functionality does it provide?
For the better part of the past 10 years, the markets have been talking about fragmentation; fragmentation in electronic pricing, distribution, and dispersion of venues. Edgewater Markets ultra-low latency trading platform, both for execution and white label use, were designed to integrate the market; connecting never before accessed local market liquidity and the clients who benefit from that access, to trade with one another in a more efficient manner with significantly lower trading costs. Clients can interact with one another, both in spot FX, NDF trading, and precious metals, without crossing spreads, and without revealing their interests to market participants that they cannot trade with. This combination of results leads to a lesser market impact of trades and a higher, more reliable/resilient liquidity pool to interact with in both calm markets and periods of stress.
Earlier this year you launched EdgeFXLatam which looks like a very special platform indeed. Who is that aimed at and what important features does it have?
EdgeFXLatam is a complete solution for our clients in Latin America. With both market making, market taking trading options, our clients are able to participate in the market with more tools and access to liquidity than ever before. With onshore NDF liquidity turned into an NDF, our North American and European clients are able to access Latam NDF currencies with spread compression not seen since the days of early electronification of the developed markets. As a white label product, we’ve built the tools that empower our global clients to distribute this unique technology in an extremely cost-effective manner. By pioneering the integration of local markets into the larger market, by providing them with the technology to do so, Edgewater Markets is reversing fragmentation and introducing new liquidity depth to all our clients, both in execution services and white label services.
You also offer White Labelled technology solutions. What are the benefits of custom branded platforms and how flexible are you able to be in meeting differing client requirements?
Each client of Edgewater Markets has their white label product set up for their bespoke needs. No two clients are alike, and no two client’s technology requirements are treated alike. With over 100 years of experience at market technology firms, use of white label systems, and unique credit work flow, our staff are able to tailor the technology offering per client, per user, with an intense focus on delivering a solution that enhances each individual users needs, thus maximizing their efficiency.
Technology is clearly very important to Edgewater. In what ways do you leverage it to help you deliver more personalised and bespoke liquidity and trading services and also to reduce risk?
To ignore the need for technological advances, in any market-place, is to introduce irrelevancy. Edgewater’s technology offering was designed and built to deliver both innovative solutions and adaptable work-flow processes. In short, the system can adapt quickly; the code is very conformable.
The introduction of new and truly unique liquidity sources and trading functionality, coupled with our technology, reduces risk, compresses trading costs, and provides each user of our platforms with the ability to access the market wherever their office may be, or their liquidity requirement might be.
In what ways are you looking to expand your product coverage further and where will the focus of your global growth strategy be over the next few years?
Edgewater Markets will expand the distribution of our technology into Europe, North America, and Asia, and in EM, partnering with more local liquidity players who lack the technology to drive and dictate their participation in the market on their terms. Our highly scalable infrastructure provides for not only aggressive geographic expansion but for new product development as is well evidenced with our Latam NDF platform. Edgewater Markets also has a Latam Fixed Income platform in beta, which we expect to roll out imminently to our existing client base.