Hidden Road launches synthetic prime brokerage

Hidden Road announced the launch of Route28, its new synthetic prime brokerage offering covering OTC Swaps across all major asset classes, including FX, equities, commodities, digital assets, energy and rates. Hidden Road is a global credit network for institutions.

The new offering is run out of Hidden Road’s FCA-regulated UK entity with front-end and matching technology provided by Crossover Markets. With this launch, Hidden Road becomes one of the few prime brokers globally to offer cross-margining and margin financing across cash/spot, cleared derivatives and OTC Swaps products in all major asset classes. The product was built in conjunction with major global hedge funds, brokers and principal market making firms.

Michael Higgins, global head of Business Development at Hidden Road, said in a statement: “Route28 is a continuation of Hidden Road’s strategy to provide more efficient credit intermediation services. The demand across the spectrum of FX, equities, commodities and digital assets has been building since we launched the firm. Bringing to market a synthetic prime brokerage offering – especially one without any clearing or technology fees – was an obvious extension our clients were looking for.”

Route28’s launch is anchored by a number of the world’s largest market makers, proprietary trading firms, quantitative hedge funds, brokers, liquidity aggregators and technology providers including Capital.com, FXCM, Pepperstone, oneZero, Gold-i, PrimeXM and Argamon Markets, among others.

“Hidden Road continues its mission to increase operating efficiency across the institutional landscape, and we are honored to supply CROSSx as the technology of choice for Route28,” said Brandon Mulvihill, co-founder and CEO of Crossover Markets, in a statement. “CROSSx was designed to operate 24/7/365 with speed and performance characteristics that rival any offering across any asset class. We believe speed and performance are fundamental in lowering the cost of trading. As a result, Route28 customers can enjoy competitive spreads across a wide range of products.”

“The launch of Route28 is another important step in the drive towards making the institutional trading landscape more efficient,” said Brendan Callen, CEO of FXCM, in a statement. “Synthetic prime brokerage creates efficiencies from a balance sheet and funding perspective when compared to traditional financing and we look forward to bringing these advantages to our clients to help improve their trading experience.”

Elan Bension, founder of Argamon Markets, said in a statement: “Route28 allows us to consolidate our trading with a partner who is supported by the world’s leading market makers while cross-margining exposures across asset classes. This is the most innovative release in the prime space for decades.”

oneZero will make the service available to over 250 brokers, banks and hedge funds. Andrew Ralich, CEO and co-founder of the multi-asset enterprise trading technology solutions provider, said: “Being selected by Hidden Road as a component of their liquidity and risk infrastructure is a testament to our ongoing investment in institutional innovation.”

Clive Diethelm, founder of PrimeXM, said in a statement: “Adopting this approach results in reduced latency, eliminates overhead, and minimizes third-party risks, paving the way for streamlined collaboration and a more unified, efficient trading ecosystem.”

Read the full release

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