San Francisco, CA – September 28, 2016 - OTC Exchange Network, Inc. (OTCXN) has announced the closing of its Series A round of financing.
OTCXN was founded by electronic trading and e-FX technology expert, Mr. Rosario M. Ingargiola, to leverage Blockchain (also known as Distributed or Shared Ledger Technology), Smart Contracts, Cryptographic Multi-Signature and other related technologies in a unique, focused, total solution for global FX trading use cases.
“OTCXN has a crystal clear value proposition -- we are eliminating credit intermediation -- it's really that simple…starting with institutional FX trading," noted Rosario Ingargiola, Founder and CEO. "In short, we have a technological solution to the biggest problem plaguing the biggest market in the world, the FX market." Mr. Ingargiola says that this "credit gap" problem is directly related to the decline in global FX trading volumes for the first time since 2001, as reported in the most recent BIS Triennial Survey.
"Unlike virtually all of the firms leveraging Blockchain or DLT for capital markets use cases, real-time clearing and settlement is but one feature of our total solution instead of the core value proposition," said Mr. Ingargiola.
Phase one of the network rollout will specifically target bank and non-bank market- makers who wish to price directly to retail brokers without Prime Brokerage and other intermediaries and their associated layers of cost. This will open up entirely new markets by making it possible to onboard counterparties that do not have, or cannot obtain, Prime Brokerage credit lines. For firms that are able to secure credit lines through Prime Brokerage or through a Prime-of-Prime, it will drastically reduce costs and increase collateral, counterparty and liquidity management options. The company is also exploring ways to reduce capital costs for participating Prime Broker members while enabling them to earn Prime Brokerage-like fees, but without the legal and documentary overhead. "One thing is certain; costs and risks for all counterparties will be lower for members of our network than with current incumbent systems," said Mr. Ingargiola.
Ingargiola says that the company plans to make the network offering available in NY4, LD4 and TY3. Members of the network will have a future proof, turn-key solution requiring no direct knowledge of Blockchain or other underlying technologies to benefit fully.
About Mr. Ingargiola
Rosario M. Ingargiola was previously the founder of FXone, acquired by a global investment bank, where he led the design and development of one of the most comprehensive institutional FX exchange technology stacks in the market, used by global Tier-1 clients. He has been responsible for multiple award winning products and patents in the institutional electronic trading technology arena. More information can be found in his public LinkedIn profile: https://www.linkedin.com/in/rmingargiola.
OTCXN is a leader in the FinTech and Blockchain community in Silicon Valley with headquarters in San Francisco, California. As the company emerges from stealth mode, additional detailed information will be available on www.otcxn.com and @otcxn.
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