SCOPE Invests $27 Million in XMHFT High-Frequency Trading Venture

SCOPE, a leading financial consulting and fundraising firm, has made a significant $27 million investment in launching 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.

SCOPE has long been recognized for its prowess in fundraising and consulting, particularly in the startup and venture capital sectors. With the introduction of XMHFT, 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 growing HFT trend, which currently accounts for 50-60% of trading volumes in U.S. equity and futures markets. By expanding its services into the Indian financial markets, SCOPE is not only broadening its geographical reach but also offering robust trading solutions in a rapidly developing market.

SCOPE anticipates substantial growth from XMHFT over the next three years, with revenue projections set at $450,000 in first year, $900,000 in second year, and $1.8 million by third year of operations. These figures reflect the company’s confidence in the scalability and demand for HFT services among mid-sized firms.

AppallaSaikiran, Founder & CEO of 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.”

By utilizing its established infrastructure and strong market reputation, SCOPE aims to drive client success in the HFT sector, ultimately achieving profit margins of 35-40% within three years.

SCOPE’s entry into high-frequency trading builds on its solid financial performance over the past year. The company facilitated fundraising for 82 startups, each securing average investments between $3M and $4M, generating $11.89 million in revenue from success fees and upfront fees. Additionally, SCOPE supported 8 venture capital funds in raising $175 million, contributing an additional $3.5 million in success fees. With 138 B2B clients utilizing its consulting services, SCOPE's total revenue reached $40.23 million, with profits soaring to 18%.

XMHFT distinguishes itself in the market by offering a cost-effective solution for mid-sized firms at $9,000 per terminal, ensuring affordable access to high-frequency trading technology. It serves both U.S. and Indian markets, providing a broad range of trading strategies, including latency arbitrage, statistical arbitrage, and sentiment analysis. Clients also benefit from SCOPE's extensive expertise across fundraising, consulting, and asset management, which ensures a comprehensive and holistic approach to financial growth.

The launch follows SCOPE’s recent acquisition of an Asset Management License in the U.S., which marked a pivotal expansion of the firm’s investment capabilities. With over $90 million secured to support its asset management division, SCOPE is well-equipped to manage a diverse client portfolio, focusing on high-growth sectors such as fintech and gaming.