The financial consulting and fundraising firm SCOPE announced to have made an investment of $27 million to launch XMHFT, its latest venture in the high-frequency trading (HFT) sector. This investment covers a broad range of critical areas, including technology infrastructure, tech team expansion, compliance measures, API development, B2B sales relations, and continuous algorithm upgrades. XMHFT is set to deliver advanced, AI-powered HFT algorithms tailored specifically for B2B clients in the United States and India, providing mid-sized firms with access to cutting-edge trading technology at a competitive rate of $9,000 per terminal, the company stated.
With this, SCOPE is expanding its offerings to include high-frequency trading, a domain typically dominated by large financial institutions. The service leverages AI-driven algorithms designed for latency arbitrage, statistical arbitrage, and sentiment analysis, providing clients with the speed, precision, and scalability necessary to excel in today’s fast-paced trading environments.
XMHFT is strategically positioned to capitalize on the high-frequency trading (HFT) trend, which represents a significant portion of trading volumes in the US equity and futures markets. The company anticipates substantial growth from XMHFT, with revenue projections increasing from $450,000 in the first year to $1.8 million by the third year. SCOPE aims to achieve profit margins of 35-40 per cent within three years by leveraging its established infrastructure and strong market reputation.
Appalla Saikiran, Founder & CEO, SCOPE, said, “Launching XMHFT represents a bold step forward for SCOPE as we continue to innovate and expand our service offerings. By democratizing access to high-frequency trading technology, we’re empowering mid-sized firms to compete on a global stage, driving growth and creating value for our clients. We are excited about the potential XMHFT brings and look forward to redefining the asset management landscape.”
The company has facilitated fundraising for 82 startups, securing average investments of $3-4 million each and generating $11.89 million in success and upfront fees. The firm also helped 8 venture capital funds raise $175 million, earning an additional $3.5 million in success fees, while serving 138 B2B clients and achieving a total revenue of $40.23 million with a profit margin of 18 per cent.
The launch follows SCOPE’s recent acquisition of an Asset Management License in the US, which marked the expansion of the firm’s investment capabilities.
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From: financialexpress
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