We know exactly what profits will be made before committing to the trade each day
The Arbitrage and Forex trades are booked instantaneously – Zero Forex risk (hedged) resulting in ZERO losses to date
Inhouse Forex Intermediary service resulting in increased arbitrage returns and operational efficiencies
3 x Arbitrage trades per day - Executed when the Premium is above its mean to increase arbitrage returns
FSP licenses - Allows CURRENCY HUB to actively manage the end-to-end Arbitrage service for clients
Arbitrage Service
CURRENCY HUB
vs our Competitors
Benefits to CURRENCY HUB clients
Competitor Risks
FX Intermediary Service
SARB Regulation
Authorised FX Intermediary who can simultaneously book the FX and the arbitrage trade with their FSCA licence, knowing what profits will be made before committing to the trade - hence ZERO LOSSES since inception.
Outsource FX intermediary services to 3rd parties
Material operational efficiencies
Same-day settlement
Decreasing client’s risk and increasing the Crypto premium (cost saving)
Delayed FX settlements
Can only trade the arb every 2 or 3 days
Potential loss due to increased FX exposure
Multiple service providers to liaise with
FSP Licenses
FSCA Regulation
FSP Cat I
FSP Cat II
FX Intermediary
Only 2 FSP to our knowledge offer arbitrage, none have the FX in-house or can simultaneously book the FX and the arbitrage trade.
Owners are accountable to the FSCA and code of conduct
Discretionary arbitrage trading
Legal opinion
Potential contravention to FAIS act, Exchange control laws and SA companies act
Increased counterparty risk
Crypto Regulation
Ready for regulation (expected Q4 2021)
No FSP licenses will require competition to cease operating
Business as usual
Cease operations
Liquidity & Crypto Pricing
Option to trade on-exchange (Bitstamp, LUNO & VALR) and off-exchange (OTC)
All but one are only trading on-exchange
Our in-house bots / algorithms sources the best pricing across both on-exchange and off-exchange ensuring we trade at the highest premium
Limited liquidity, resulting in poor SA Crypto pricing leading to a lower Premium and thus lower arbitrage returns
FX RISK
ZERO as it's hedged with credit lines
Unhedged - Exposed to FX movements for 24 to 72 hours
Zero arbitrage losses since inception
Volatile appreciating ZAR will result in a loss
Trade Duration
24 Hours, trading every (work) day, generaly only when the Premium is above 1.5%
24 to 72 Hours on average (or more)
Daily trading and settlements
Ability to trade 3x per day
Increased FX exposure which could result in delays and a loss
FX Deal Bookings
CURRENCY HUB Discretion
Clients will have to either email or phone the 3rd Party FX dealer to book trades themselves for every arbitrage trade (if they not doing this, then they are in contravention to FAIS act)
End-to-end solution
No admin for clients once onboarded
Active arbitrage trading, seeking the optimum time to trade FX on behalf of the client resulting in a higher Premium
Admin for client to book trades themselves (unless competitor has a CAT II license)
Risk of booking FX at a bad rate
Forgetting to book FX deals
Arbitrage Fee
ZERO Transaction Fee for the arbitrage.
The FX intermediary charges a low FX fee.
Profit Share + the 3rd party FX fees
Bank declaration states that All profits generated are for the sole benefit of the client
Profit Sharing is a violation and in contravention to the Bank Declaration Statement
Arbitrage Trading
Trading every (work) day. Option to trade up to 3 trades in one day
One trade per day
If the Premium is above average, the client will benefit from 3 higher than average arbitrage profits
Only able to trade one arbitrage trade at the higher Premium
Experience
Founders have deep experience in Asset Management and Trading Solutions
10+ years in Asset Management
5+ years Crypto Arbitrage
Little to no Financial Market Background
Best Execution
Low operational risk
Legally compliant
Low counterparty risk
Best Arbitrage service provider
Increased counterparty risk
Increased operational risk
Little traditional market knowledge
Little trading experience
Lower Premium
*BLACK ONYX FUND HUB is a licensed FSP and FX intermediary service provider and all fees for Crypto related services are charged at the FX intermediary. BLOCKCHAIN CURRENCY HUB (Pty) Ltd, trading as CURRENCY HUB, is not regulated by FSCA while Cryptocurrencies remain unregulated, facilitating the Crypto Arbitrage service at zero fee.
FX Intermediary Service
SARB Regulation
CURRENCY HUB
Authorised FX Intermediary
Competitors
Outsource FX intermediary services to 3rd parties
Benefit to CURRENCY HUB client
Material operational efficiencies
Same-day settlement
Decreasing client’s risk and increasing the Crypto premium (cost saving)
Competitors Risk
Delayed FX settlements
Can only trade the arb every 2 or 3 days
Potential loss due to increased FX exposure
Multiple service providers to liaise with
FSP Licenses
FSCA Regulation
CURRENCY HUB
FSP Cat I
FSP Cat II
FX Intermediary
Competitors
Only 2 FSP to our knowledge offer arbitrage
Benefit to CURRENCY HUB client
Owners are accountable to the FSCA and code of conduct
Discretionary arbitrage trading
Legal opinion
Competitors Risk
Potential contravention to FAIS act, Exchange control laws and SA companies act
Increased counterparty risk
Crypto Regulation
CURRENCY HUB
Ready for regulation (expected Q4 2021)
Competitors
No FSP licenses will require competition to cease operating
Benefit to CURRENCY HUB client
Business as usual
Competitors Risk
Cease operations
Liquidity & Crypto Pricing
CURRENCY HUB
Option to trade on-exchange (Bitstamp, LUNO & VALR) and off-exchange (OTC)
Competitors
All but one are only trading on-exchange
Benefit to CURRENCY HUB client
Our in-house bots / algorithms sources the best pricing across both on-exchange and off-exchange ensuring we trade at the highest premium
Competitors Risk
Limited liquidity, resulting in poor SA Crypto pricing leading to a lower Premium and thus lower arbitrage returns
FX RISK
CURRENCY HUB
Hedged with credit lines
Competitors
Unhedged - Exposed to FX movements for 24 to 72 hours
Benefit to CURRENCY HUB client
Zero arbitrage losses since inception
Competitors Risk
Volatile appreciating ZAR will result in a loss
Trade Duration
CURRENCY HUB
24 Hours
Competitors
24 to 72 Hours on average (or more)
Benefit to CURRENCY HUB client
Daily trading and settlements
Ability to trade 3x per day
Competitors Risk
Increased FX exposure which could result in delays and a loss
FX Deal Bookings
CURRENCY HUB
CURRENCY HUB Discretion
Competitors
Clients will have to either email or phone the 3rd Party FX dealer to book trades themselves for every arbitrage trade (if they not doing this, then they are in contravention to FAIS act)
Benefit to CURRENCY HUB client
End-to-end solution
No admin for clients once onboarded
Active arbitrage trading, seeking the optimum time to trade FX on behalf of the client resulting in a higher Premium
Competitors Risk
Admin for client to book trades themselves (unless competitor has a CAT II license)
Risk of booking FX at a bad rate
Forgetting to book FX deals
Arbitrage Fee
CURRENCY HUB
Transaction Fee
Competitors
Profit Share
Benefit to CURRENCY HUB client
Bank declaration states that All profits generated are for the sole benefit of the client
Competitors Risk
Profit Sharing is a violation and in contravention to the Bank Declaration Statement
Arbitrage Trading
CURRENCY HUB
Option to trade up to 3 trades in one day
Competitors
One trade per day
Benefit to CURRENCY HUB client
If the Premium is above average, the client will benefit from 3 higher than average arbitrage profits
Competitors Risk
Only able to trade one arbitrage trade at the higher Premium
Experience
CURRENCY HUB
Founders have deep experience in Asset Management and Trading Solutions
12 years in Asset Management
4 years Crypto Arbitrage
Competitors
Little to no Financial Market Background
Benefit to CURRENCY HUB client
Best Execution
Low operational risk
Legally compliant
Low counterparty risk
Best Arbitrage service provider
Competitors Risk
Increased counterparty risk
Increased operational risk
Little traditional market knowledge
Little trading experience
Lower Premium
*BLACK ONYX FUND HUB is a licensed FSP and FX intermediary service provider and all fees for Crypto related services are charged at the FX intermediary. BLOCKCHAIN CURRENCY HUB (Pty) Ltd, trading as CURRENCY HUB, is not regulated by FSCA while Cryptocurrencies remain unregulated, facilitating the Crypto Arbitrage service at zero fee.