1. Tell us a bit about yourself / your co-founder
Seasoned financial engineer, with 10+ experience in financial markets and banking as a structurer and quant for Tier 1 institutions (HSBC, BNP, Lloyds…). Expertise in designing derivatives and structured products, models, and transactions. Live by Mandelbrot’s motto: “I find order in chaos and chaos in order”.
2. The Thesis / Big Idea.
Cryptocurrencies markets are following the exact same pattern than traditional markets have in the 70’s and 80’s. With the emergence of derivatives markets, the next step will be structured products, the most profitable banking business line since the 80’s and my personal expertise. The recent evolution in products, such as ETF Spot BTC in the US, is the proof that this asset class is becoming more institutional and that traditional products and practices will be increasingly adopted in this area.
3. What problem or opportunity do you address, and for which target customers?
Nobody denies the opportunity that digital assets represent. What is a massive problem is risk management: asset managers are helpless when it comes to hedging their portfolios, because adapted instruments do not exist or are too expensive. Most asset managers decide then to leave their portfolios un-protected to downside risk and suffer massive losses in adverse market conditions.
Phalanx mission is then to develop those products and give an easy and user-friendly access to professional and institutional asset managers so they can manage their digital assets portfolios in a professional fashion.
4. Who are your competitors and what is your USP?
Very few competitors globally, with roughly 5 or 6 companies proposing those instruments. They are based in the US, the UK, Singapore and HK, but none of them is active in the EU and only one is regulated. They all adopted a very traditional distribution mode, with a classic trading room and a heavy cost structures, with numerous people (sales, traders, structurers) with high salaries. Most of them are unable to distribute to regulated entities, cannot accept trades under 250,000 USD (so for portfolios around c. 50 millions) and takes hours, if not days to execute.
Phalanx decided to leverage technology to make the process faster, simpler, smoother and for a wider audience. We have developed a platform where asset managers can:
– Build and execute products in under a minute, vs. hours
– Operate in a regulated environment, in France, the EU, and partnering jurisdictions
– Trade as little as physically possible
This allow Phalanx to not only offer innovative products, but to make the experience trustworthy and comfortable for customers and remain profitable no matter the size of a trade.
5. What is your current stage and traction?
– Tech: v2 90% complete
– Traction:early adopters across Europe (Switzerland, UK, France, Germany and Luxembourg). Partnering with one of the to launch the very first CPPI on BTC globally
– R&D: all pricing and risk models developed and validated
– Regulation: framework and roadmap ready
Funding: Seed round, the objective is to launch operations and obtain the trading agreement from French regulators
6. What are your plans for the next 6-18 months and how can our network help?
– Operations: launch trading on a sandbox mode, accordingly with French regulation
– R&D: launching the BTC CPPI we are currently working on with our customer
– Regulation: applying and obtaining the status ‘Investment Company’ from ACPR
We worked hard on finding the quickest and most effective way to get the trading status, but it remains a costly step in our development roadmap. We are now looking for funding to help us cross this hurdle and scale up our solution.
7. What’s on your bookshelf or podcast app? Your favourite place for a coffee or a drink?
– Bookshelf: 2 books at the moment.
The Name of the Rose, Umberto Eco. I have read it once a year since I am 15, and always find something new in it. Generally speaking, I am fascinated by the way erudition can be a source a happiness, how knowledge is built and how reasoning is formed, how truth can be a source of mistakes and the other way around. A humbling read that helps me to constantly question my knowledge and certainty about things.
Stock exchanges, financial markets or temples for speculation, Bernard Belletante, 1986. A small and old book about financial markets in France in the 80’s by a French economist. Much less political than the clickbait title would suggest, it is a well documented source of info on how exchanges were working 50 years ago and allows me to understand the massive (r)evolutions that occurred since then, technologically-wise for instance. I am passionate about history of finance, as I usually identify in history mechanism, evolutions and phenomenons still at work today. It helps me build a bigger picture, beyond my own experience, and better understand the current situation.
Best place to have a drink: nothing can beat a London pub. My preferences: Ye Olde Watling in the City, for an afterwork drink in the heart of financial markets, surrounded with fascinating history about the town and people who made it. The Sun of Clapham for a moment with friends and family, in my favourite neighbourhood in London.