Inside HedgeTech: The Algorithmic Trading Firm Making the World's Top Digital Assets Markets.
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CAMBRIDGE, Mass., Feb. 2, 2021 /PRNewswire/ -- Chances are that if you trade the order book of major digital spot or derivatives digital assets centralized or decentralized exchanges, you have filled orders placed by HedgeTech's algorithms on behalf of their clients. The company is one of the top digital assets designated market maker, the not-so-well-known industry players that all markets need.
Broadly speaking, anyone placing maker orders – these orders that let you decide both the execution amount and price but do not usually get filled immediately – can be considered a market maker. Still oversimplifying, professional market makers can either aim at maximizing their profits – known as profits driven market making - or at optimizing markets' efficiency – called designated market making. Big names on Wall Street such as Jane Street fall under the former, while HedgeTech is part of the latter.
No more New York trading floor with hundreds of traders shouting across the room or on the phone, market making is now fully automated. From an office located in a tower only steps away from MIT in Cambridge, Massachusetts, a small group of people work quietly on solving current market problematics, designing new strategies and improving server configurations.
The company's latest achievement is a newly designed script that can build an order book on any order book based exchange out of a community based liquidity pool such as Uniswap, along with the arbitrage algorithm to run across these platforms for those who would see fit. In combination with a liquidity reward program that provides an extra incentive for investors to participate in such liquidity pools, it adds to a lengthy strategy catalog geared towards providing liquidity to trading venues so that traders can trade whenever we want, whatever we want, at a lower cost of trading.
Aside from strategy design, what really sets HedgeTech apart is its back-end infrastructure, built for extreme stability and scalability. The firm states that a single trader can monitor thousands of scripts running on hundreds of markets at one glance and perfectly manage execution. The speed at which the company builds its own exchange connectors – a few hours – and its remarkable scalability have sparked the interest of high-profile institutions such as prominent global exchanges, broker dealers and even other market makers. Considered a true FinTech company, HedgeTech definitely stands on the technical side of things.
Despite a one-of-a-kind combination of trading strategies and technology, founders Laurent and Tom are cautious when it comes to media exposure and social media presence. They would rather remain close to academia, giving guest lectures on algorithmic trading to graduate students at Cornell University for example.
The trading firm, that is minimally and privately funded, was processing upwards of 900 outbound server requests per second by the end of 2020. HedgeTech also states that it has been approached for deeper collaborations. This comes after the company had already attained some recognition within the industry. In 2019, CNblogs/Cryptomorrow listed HedgeTech as "best market makers" on a top referenced market maker list. In 2020, it received the most promising billion dollar+ SaaS startup award from Hacker Noon. Finally, just a weeks ago, Hummingbot, perceived as one of its competitors, added HedgeTech to their market makers directory, describing the company as a "leading marker maker".
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