Addison Churchill enters the liquidity provision business and commits capital to retail FX brokers with volume-based raw-spread business model
Institutional FX consultancy and risk management firm Addison Churchill has today announced that it is to commit growth capital to retail FX brokers in order to provide a full liquidity solution alongside its professional services consulting business.
According to the company’s official press release which was issued today, Addison Churchill intends to streamline its solution to cater excluively to retail firms by creating synergistic long-term relationships with its broker clients, focusing on mutual growth.
One of the most important aspects of this business model is Addison Churchill’s capital commitment to clients. ”Our commitment to the growth and sustainability of our broker clients is at the forefront of our mission” stated Keith Sazer, CEO, of Addison Churchill in a corporate statement today.
”Our budget for the next 12 months is approximately $5 million in capital commitments to ensure the growth of those clients. We do not make direct investments in exchange for equity. Instead, we use the capital for any logical use to grow our clients’ businesses, such as marketing budgets, improving technology, and product R&D” he continued.
Addison Churchill considers that STP brokers in particular stand to gain significantly from the capital commitment offering. Where traditionally they have relied on what Addison Churchill terms as being volume-based liquidity relationships with competing brokers, they can now utilize Addison Churchill’s raw spreads as well as participate in additional capital infusions to strengthen their own competitive positions in the marketplace with the knowledge that their liquidity provider is not competing with them as Addison Churchill does not onboard retail clients directly.