Liquidity provider

Keeps a working pool across several currencies and posts matching quotes so participant trades always have a counterparty.

What the provider does

Holds a working pool across several currencies and actively trades it, standing as the other side to participants' deals.

Builds the pool

Brings in fiat capital and receives from the issuing bank a working pool of settlement tokens across several currencies.

Quotes and trades

Posts matching quotes and swaps tokens of one currency for another, holding the position until it is closed by an offsetting trade.

Manages the position

Takes the market risk of holding an open position in each currency and keeps the position size within agreed limits.

Provides the counterparty

Supplies matching flow in active corridors so participants' deals always have a second side — via the dCLS window or direct trades.

How working the pool plays out

From bringing in capital to closing the position with an offsetting trade — the liquidity provider's working cycle.

The diagram is illustrative and simplifies the actual flow.

1
Bring in capital
The provider deposits fiat with the issuing bank and receives settlement tokens — the pool's working capital.
2
Build the pool
Spreads the capital across several currencies in order to quote exchanges in active corridors.
3
Quote and trade
Posts a matching quote and executes the swap through the dCLS netting window or as a direct bilateral trade.
4
Close the position
Closes the open position with an offsetting trade and locks in the result; hedges residual risk where needed.

Sources of income

Income is made by trading the provider's own pool. The direction of income is described qualitatively, with no rates or spreads in figures.

Trading income

The main source — income from swapping tokens of one currency for another at a favourable rate, on the spread between buy and sell.

Buy-back agreement

Additional income is possible under a separate bilateral buy-back agreement with the issuing bank — only where such an agreement exists.

The direction of income is shown qualitatively. Specific terms are set at partner onboarding.

Legal basis

What is required

The right to run proprietary trading (FX) for its own account in the participant's jurisdiction. The provider observes limits on the size of the open position in each currency and reports its positions regularly.

Division of responsibility

Surelle/4pay provides the technology infrastructure without a licence of its own. The trading activity and regulatory responsibility rest with the resident participant.

Classification

The provider passes a fit-and-proper check (KYB) at the issuer and the platform. The legal regime of the trading activity depends on the participant's jurisdiction and is clarified at onboarding.

This information is for reference only and is not legal or investment advice. The specific legal classification is determined at KYB onboarding and depends on the jurisdiction.