TP ICAP has added Susquehanna Digital Assets, a subsidiary of SIG, as a market maker to its Digital Assets Spot platform due to launch this year.
Susquehanna Digital Assets will help TP ICAP ensure competitive prices for buyers and sellers. The proprietary quantitative trading firm was an early entrant to the cryptocurrency market and handles millions of transactions on exchanges daily.
It joins other liquidity providers including Flow Traders, Jane Street and Virtu Financial.
The platform, which is still subject to registration with the UK Financial Conduct Authority, will feature a wholesale electronic over the counter (OTC) marketplace for spot crypto asset trading, including bitcoin and ethereum.
It will also include post-trade infrastructure that provides straight through processing (STP) and payment netting services for executed trades into a network of digital asset custodians.
Against the growing demand, last December the International Swaps and Derivatives Association proposed the development of contractual standards for digital asset derivatives, identifying crypto assets as a unique product class.
“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.
Foster added, “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.”
Ben Hessels, at Susquehanna Digital Assets, said, “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.“