Crypto exchange One Trading will launch its new trading venue in the next few weeks.
The Block reported on Thursday that the crypto exchange, which emerged as a spin-off from Bitpanda in June this year, is set to introduce its new trading venue, F.A.S.T.
One Trading claims that its new trading platform will be the “fastest-ever digital asset trading venue,” according to an announcement this morning.
“Our team has worked relentlessly to create a trading venue that redefines speed and efficiency. With F.A.S.T, we aim to empower our customers with unparalleled advantages in the competitive world of crypto trading,” said Josh Barraclough, CEO of One Trading.
One Trading asserts that its matching and risk engine functions in under one microsecond. Users can execute over 200 complete cycles of price discovery, order creation, and cancellation before placing a single order on well-established competitor exchanges.
Amazon Web Services, the cloud services provider, conducted an independent speed test on the platform. The results revealed that One Trading’s round trip of 112 microseconds was superior to the 126 microseconds offered by the London Stock Exchange Group’s Turquoise venue. It was also found to be 1,000 times faster than CME’s global Matching Engine.
One Trading will initiate its launch by offering free trading on all cryptocurrency pairs, a strategy aimed at attracting significant institutional traders. The platform has also submitted an application for a MiFID II Trading Venue License in the European Union.
One Trading previously raised €30 million in a Series A funding round led by Peter Thiel’s Valar Venture, and is led by Josh Barraclough, who had overseen Bitpanda Pro and was a former digital innovation head at JPMorgan.
In recent weeks, the startup has been conducting beta testing of its platform with market makers. Upon its official launch, the venue will be accessible to both institutional and retail customers, with dedicated colocation services available for institutional clients.
Greg McLoughlin, the Strategy and Growth Lead at One Trading, is optimistic that the platform’s emphasis on speed will set it apart from other trading venues.
“Given the price discovery and execution advantage versus other venues we believe that we can be the central risk transfer venue for all major liquidity providers,” McLoughlin told The Block. “On top of this, making it free to trade means that big institutions can exchange risk and axes at the lowest costs. If you are an institution, you almost have a fiduciary responsibility to trade on our venue given the cost and execution advantage.”