Augmentum Fintech Invests £2.6M in FX Platform LoopFX

Augmentum Fintech plc, a prominent fintech fund in Europe, has disclosed a substantial investment of £2.6 million ($3.3 million) in LoopFX, a foreign exchange (FX) trading platform headquartered in London. Augmentum's decision highlights their dedication to promoting cutting-edge fintech solutions in the capital markets.

LoopFX provides a unique matching system for significant spot FX deals, allowing traders to instantly match with other asset managers and banks at mid-market prices. The platform utilizes advanced technologies to decrease trading expenses and improve the execution of trades, all while reducing the disclosure of information. LoopFX anticipates that this investment will strengthen its expansion and facilitate the advancement of its novel protocol in the foreign exchange industry.

After the investment, Tim Levene, the Chief Executive Officer of Augmentum Fintech, will become a member of LoopFX's board of directors. Levene expressed his excitement by stating that LoopFX is a perfect example of a financial technology company functioning in the capital markets in collaboration with reputable financial institutions. The board of LoopFX comprises esteemed industry experts, including John Sievwright, the former Chief Operating Officer, International, at Merrill Lynch, Martin Gilbert, the Chairman of Revolut and Founder of Aberdeen Asset Management, and Ivan Ritossa, a former executive committee member at Barclays Capital.

LoopFX's revolutionary “Peer-To-Bank” matching technology has been seamlessly included in prominent forex systems, such as State Street's FX Connect and FactSet's Portware, with great success. This technology allows traders to instantly detect and identify deals that are more than $10 million. It helps in finding matches with other institutions that are buying securities and provides banks with a safe platform to showcase their market strategies. The integration of State Street's FX Connect, which is a component of the GlobalLink suite of e-trading platforms, occurred in September 2023.

LoopFX and FactSet began their relationship early this year. The platform is compatible with Portware, a sophisticated execution management system used by prominent asset managers for handling several types of assets. The connection enables LoopFX's features to be easily accessed via FX Connect, hence automating the whole FX trading process.

Levene emphasized the significant strategic value of this investment, stating that LoopFX enhances trading and price discovery in the FX market, hence aiding market players in meeting best execution standards.

Augmentum's investment is in line with its goal of supporting rapidly expanding fintech companies that are causing significant changes in the financial services industry. Augmentum's sponsorship enables LoopFX to strengthen its market presence and provide enhanced value to consumers via ongoing innovation and refinement of its trading products.