Platform is set to launch this year but still awaits FCA approva

Market maker Susquehanna has joined interdealer broker TP ICAP’s new Digital Assets Spot platform as a liquidity provider.

Other liquidity providers already announced for the new digital asset platform, which is set to launch this year, also include Flow Traders, Jane Street and Virtu Financial.

“It’s great news to be welcoming another highly regarded liquidity provider to the platform, adding greater liquidity and bringing deep expertise for our global network of clients,” said Simon Forster, co-head of digital assets at TP ICAP.

“As interest grows in digital assets from institutional investors and traders, partnerships of this calibre, in addition to our position as an independent broker, means that we are well placed to guide new entrants to the market and support the growth of this exciting asset class.”

The latest venture follows the firm's launch of crypto-linked ETF’s, trading ETC Group Physical Bitcoin and CME Bitcoin Future for European clients. The service, offered to European clients earlier this month, includes Flow Traders and Jane Street as liquidity providers.

The platform, still remains subject to Financial Conduct Authority approval, will allow for a wholesale OTC marketplace for spot trading of crypto assets such as bitcoin and ethereum. It will also include payment netting services and post-trade infrastructure to allow for straight through processing.

With growing interest in crypto assets within the derivatives space, ISDA, the market association for derivatives, proposed in December the development of contractual standards for digital asset derivatives, identifying crypto assets as a unique product class.

Speaking on the digital asset platform, Ben Hessels of Susquehanna’s digital assets team said the firm “is thrilled to work alongside TP ICAP".

“There is substantial institutional interest in the space, and thus a need for institutional-grade liquidity. Susquehanna has long been a liquidity provider in the digital asset spot markets, as well as various futures and derivative markets as they have come online.

“This TP ICAP – Susquehanna partnership marries the infrastructure and connectivity that investors demand with the liquidity they need.”