24 Exchange, an over-the-counter (OTC) platform established by Fastmatch founder Dmitri Galinov, has announcement that it raised a $ 14.25 million funding round led by Point72 Ventures, a New York-based venture capital firm.
The OTC platform said on December 2 that the investment will support the continued expansion of the company’s robust multi-asset trading platform designed to offer additional asset classes including stocks and crypto. currencies to investors. This expansion aims to bring the 24 new exchange trading options to its growing institutional client base.
Point72 Ventures, owned by hedge fund legend Steven Cohen, led the $ 14.25 million funding round for 24 Exchange, a new startup that wants to give investors 24/7 access to the stock market .
Pete Casella, Partner at Point72 Ventures, spoke about the development and said 24 hour equity trading is a huge opportunity that can appeal to retail traders who want to trade after hours and on weekends. This is exactly the market that 24 Exchange seeks to target.
24 Exchange, a new trading platform, has been keen to change the way investors have traded for decades, making the stock market look like the cryptocurrency market, which never closes.
While traditional stock trading in the United States operates from 9:30 a.m. to 4:00 p.m. ET, Monday through Friday, digital assets trade non-stop, with many of the biggest trading activities often taking place on weekends.
24 Exchange, whose parent company is based in Bermuda, currently offers currency and cryptocurrency trading. The three-year-old trading platform said it wanted to make it easier for investors to buy and sell currencies in the United States and mentioned that it was already doing so in Bermuda.
Dmitri Galinov, CEO and Founder of 24 Exchange, said: “In the first 24 months of the business, we have successfully delivered an OTC FX trading solution to clients that offers significantly reduced costs and features. improved. We look forward to leveraging this additional working capital to expand our offerings beyond Non-Deliverable Forward (NDF) FX trading, FX swaps, FX spot and our newest addition, crypto trading. cash.
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24 Exchange made headlines in October after learning that it was seeking approval from the United States Securities and Exchange Commission and filed for (license) to operate a national stock exchange.
Markets: stock exchanges or over-the-counter?
Traders are most at risk when the market is closed in their geographies, which is what 24 Exchange is trying to eliminate by offering 24/7 retail equity trading in all global markets. The OTC platform aims to provide an unmatched set of benefits to retail US equity traders wherever they are. As reported by Finance Magnets, the company is exploited by 24 Exchange Bermuda Limited, regulated by the Bermuda Monetary Authority for activities based on the conduct of digital asset activities, in accordance with the Digital Asset Business Act.
24 Exchange recently acquired New York-based 11B technologies for an undisclosed amount. The acquired company offers brokerage solutions and integrations for OTC sites, brokers and professionals. 11B offers low latency software and connectivity solutions for 24 Exchanges in FX Spot and FX Swaps.
In March, 24 Exchange set a record NDF ADV (single count) for $ 456 million and another record single-day volume for NDF FX when it exceeded $ 800 million.
In August, platform declared that its Average Daily Volume (ADV) for its NDF FX reached $ 100 million, and revealed that Wall Street giant JP Morgan is one of the active clients using its NDF FX.
NDFs are cash-settled futures and are negotiated over-the-counter between two parties. The parties involved would normally settle the difference between the contracted NDF price or rate and the prevailing spot price or rate to an agreed notional amount.
Most traders often ask which is better between trading on the stock exchange or over the counter (OTC). Trading products in over-the-counter markets normally gives traders greater flexibility compared to their more regulated exchange-based counterparts. Trading on exchanges like the New York Stock Exchange (NYSE) has limitations in terms of physical location and official central organizations. But OTC transactions are done electronically, which is more convenient and normally cheaper for investors.