The biggest traders in foreign exchange gathered last May in a converted Victorian bathhouse in London.
They drank Champagne amid ornate tile mosaics, stained glass, and Oriental rugs. The results of the 2018 Foreign-Exchange Survey by Euromoney Institutional Investor Plc were being announced.
A gasp and clapping echoed through the room.
XTX Markets, a three-year-old startup, had been named the third-largest market maker in the $5.1 trillion-a-day market, leapfrogging some of the world’s biggest banks including Citigroup Inc. and Deutsche Bank AG. For a company that ranked 12th the previous year, it was a coup.
NOW THE LONDON-BASED COMPANY, which doesn’t have any human traders, is setting its sights on U.S. markets.
XTX aims to expand in stocks and Treasuries, markets in which it says customers aren’t getting a good deal. “We don’t believe that all markets are fair and efficient,” says Zar Amrolia, XTX’s co-chief executive officer. He points to U.S. equities in particular. “The speed is so high, it’s really providing no benefit to the market at all—it’s detrimental,” he says, adding that it raises costs for investors. Amrolia, who has a doctorate in mathematics from Oxford University, was co-head of fixed income, currencies, and commodities at Deutsche Bank AG before leaving in 2015 and starting XTX with fellow Deutsche Bank alumnus Alex Gerko, who also has a Ph.D. in math.
Continue reading your story on the app
Continue reading your story in the magazine
“I've Had to Think Differently”
IN SEPTEMBER, Jane Fraser shattered the financial industry’s ultimate glass ceiling when she was named the next chief executive officer of Citigroup Inc., one of the world’s three most important banks.
Yoyo Chang turned a hunch born in an English high school cafeteria into a next-generation payments app backed by serious, well-heeled investors
The Fintech Revolution Is Finally Here— And So Are the Regulators
SPEAKING IN OCTOBER to his banking brethren at the world’s biggest payments confab—the annual Sibos conference— Jamie Dimon didn’t mince words.
China’s entry into the WTO upended global manufacturing. Now it’s poised to disrupt the financial system— and the consequences could be just as dramatic and surprising
Global Finance Wants to Protect Its Culture. First, It Should Reform It
EVERYWHERE, the stewards of capitalism are in flux, grappling with the implications of a radically different future that’s set to play out from home offices, living rooms, and kitchen tables around the world.
Tame Inflation Risks With These Hedging Strategies
FOR MANY INVESTORS in the U.S., high inflation may feel like a distant worry—an historical footnote from the 1970s or a problem of poorly run economies in emerging markets. But there are signs indicating that some investors are worried. Bloomberg can help you see how they’re hedging their portfolios and what you can do to prepare for a dramatic change in prices.
The Crisis Fighters
The Crisis Fighters Central bankers used to bail out financial institutions. In a world wracked by Covid-19, they’ve doled out almost $9 trillion, some of it to a motley cast of unlikely beneficiaries. Will it ever end?
Using Growth Factors to Pick Investments in Equities and Bonds
IN LATE MARCH, the U.S. markets started their amazing recovery from the Covid-19 chaos and economic uncertainty.
Looking to Follow the Fed? Here's How to Find Key Data for That
CHAIR JEROME POWELL has repeatedly said the Federal Reserve is committed to using its full range of tools to support economic activity.
China's Growth Story Isn't What It Seems
GROWING UP IN Bulgaria with the Soviet bloc crumbling around me, I knew from experience the communist gift for turning gold into dross.