Fundamental Interactions Introduces an Automated Liquidity Sourcing and Hedging Infrastructure as a plug-in to the Neutron Suite of Products
NEW YORK / HAMILTON, BERMUDA — 14 February 2019 — Fundamental Interactions (FI) today announced the launch of its proprietary automated-hedging platform designed to jumpstart liquidity within a new exchange. It allows an automated market maker to refactor quote feeds from an active external exchange in order to supply continuous order liquidity to the internal market book. VL Financial Ltd, currently in the process of attaining a digital asset license, will use the service in Bermuda.
The service has two legs (auto-quoting and auto-hedging) each performed from the principal account of a market maker to the exchange. The auto-quoting process converts bid-ask quotes from external exchange market data feeds into orders to create liquidity. The auto-hedger leg of the process is a dynamic hedging and routing system that optimally liquidates positions resulting from the auto-quoting process.
“The ability to generate instant liquidity in Bermuda for digital asset tokens that are actively trading in other markets is an important avenue,” says Julian Jacobson, President and Chief Operating Officer of Fundamental Interactions Inc.
The liquidity platform is broadly compatible with any asset class but is primarily focused on tokenized assets and can be implemented as a plug and play liquidity service within FI’s virtual and nano exchange platforms, or it can be deployed as a stand-alone backend process for a market maker to intermediate between venues via FIX or Native API’s. The hedging process can be administered by an HTML5 interface that displays position views with P&L, slippage and risk management functions.
Rising to challenges and opportunities posed by regulation, technology, and market structure shifts – Fundamental Interactions develops leading enterprise market center technology platforms. The systems are widely deployed by securities exchanges, ATS, and inter-dealer brokers across a variety of asset classes and geographic regions.
About Velocity Ledger
Velocity Ledger (VL) is a private blockchain enabled platform operated by Velocity Ledger Technology, Inc. which provides a platform for the generation of tokenized assets, secondary trading and settlement. Velocity Ledger Technology, Inc. is a comprehensive technology solution that operates as a service with tools to support the investment and trading process for Digital Assets and Security Token creation and cryptocurrency. Velocity Ledger’s objective is to provide Software-as-a-Service (SAAS) which will eventually result in greater liquidity, real-time market pricing, cost savings, and transparency. Velocity Ledger is primarily a technology service provider of infrastructure supporting regulated digital asset businesses but also operates a licensed Digital Asset Exchange in Bermuda.