XTX Markets

XTX Markets operates as a prominent algorithmic trading firm, leveraging advanced machine learning technology to generate intricate price forecasts across a vast array of financial instruments. The firm primarily functions as a principal liquidity provider, employing sophisticated quantitative models and high-performance computing infrastructure to execute trades with precision and efficiency in global markets. Its technical approach emphasizes data-driven decision making and continuous optimization of trading strategies.

The company was founded in 2015 by Dr. Alex Gerko, who serves as co-CEO. Prior to establishing XTX Markets, Dr. Gerko accumulated significant experience in financial markets, including a tenure as Head of FX Trading at GSA Capital and earlier roles in foreign exchange at Deutsche Bank. His foundational insight centered on the application of advanced mathematical and computational methods to transform market making, moving away from traditional voice brokerage towards a fully automated, technology-centric paradigm.

XTX Markets delivers its bespoke, low-market impact liquidity solutions to a diverse client base, encompassing banks, real money institutions, hedge funds, and retail brokers globally. The firm's long-term vision focuses on continually pushing the boundaries of technological innovation in financial trading, aiming to enhance market structure and deliver optimal execution quality for participants across various asset classes through its systematic and data-driven approach.

High-Level Overview

XTX Markets is a leading British algorithmic trading firm headquartered in London, founded in 2015 as a spin-off from GSA Capital. It leverages proprietary machine learning to generate price forecasts for over 50,000 financial instruments across equities, fixed income, currencies, commodities, and crypto, trading over $250 billion daily across 35 countries while providing customized, low-market-impact liquidity to banks, hedge funds, real-money funds, and retail brokers.[1][2][3][5] With over 250 employees globally and offices in New York, Paris, Singapore, and Mumbai, its mission centers on delivering consistent liquidity in volatile markets through smart automation and state-of-the-art quant research, aspiring to lead in ethics, workplace conditions, and business development.[1][2] Its investment philosophy emphasizes technical excellence in AI/ML, with XTX Ventures focusing on early-stage (Seed to Series B) AI-driven companies in sectors like infrastructure, healthcare, enterprise software, and financial markets to drive transformative scale.[4]

Origin Story

XTX Markets was founded in January 2015 by Alexander Gerko, a former GSA Capital trader, who now serves as co-CEO alongside Hans Buehler; it spun out from GSA Capital to focus on algorithmic trading.[1] Gerko's background in quantitative finance fueled the firm's rapid ascent: by 2016, it ranked ninth in FX liquidity provision with a 3.87% market share, marking the first non-bank in Euromoney's top ten.[1] Key milestones include post-Brexit expansion to Paris in 2018 as a European base and Systematic Internaliser under MiFID II, the 2020 launch of XTX Ventures for AI investments, and the 2021 rollout of XTX Direct—a U.S.-regulated single-dealer platform for bilateral equity liquidity.[1][4] This evolution shifted focus from pure exchange trading to direct client services and venture investing, growing to 150+ team members speaking 26 languages by 2020.[2]

Core Differentiators

• Unique Trading Model: Employs proprietary machine learning for precise price forecasting and risk-holding across 10,000+ assets, enabling low-market-impact liquidity with best-in-class fill rates, even in volatility; trades on 60+ exchanges with 10 million daily orders.[2][3][5]
• Network Strength: Global footprint with regulated entities (e.g., U.S. broker-dealer, EU Systematic Internaliser), partnerships with ATSs like Intelligent Cross, and easy connectivity via EMSs/third-party vendors; third-largest FX provider (Euromoney 2020), largest European ELP SI by volume (Rosenblatt FY 2020).[1][2][3]
• Track Record: Consistent liquidity in equities (~6,500 stocks/3,500 ETFs U.S., ~2,500 EU), FX, metals, NDFs; 13%+ pan-European lit cash equities share (Q1 2020); non-bank pioneer displacing traditional banks.[1][2][3]
• Operating Support via Ventures: Hands-on AI/ML expertise for portfolio companies, including technical validation, code reviews, go-to-market aid, and talent networks; invests in 20+ firms like Wayve AI, CloudNC, and Terray Therapeutics.[4]

Role in the Broader Tech Landscape

XTX Markets rides the wave of AI-driven fintech disruption, where machine learning supplants traditional bank-dominated trading, capturing market share through superior data analysis and automation—evident in its top-tier FX and equities rankings despite non-bank status.[1][2] Timing aligns with regulatory shifts like MiFID II and post-Brexit fragmentation, enabling nimble expansions (e.g., Paris hub), while market forces favor non-bank liquidity providers amid volatility and electronification.[1][3] It influences the ecosystem by channeling trading profits into XTX Ventures, fueling AI startups that scale real-world applications from autonomous driving (Wayve) to healthcare imaging (dia), amplifying AI's shift from hype to infrastructure.[4]

Quick Take & Future Outlook

XTX Markets is poised to deepen AI integration in trading and ventures, potentially expanding crypto/commodities amid rising volatility and regulatory clarity. Trends like AI agent economies and real-time data will sharpen its edge, evolving its influence from liquidity leader to AI ecosystem architect—back to its core as the non-bank pioneer transforming markets through quant precision.[1][4][5]