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LMAX Exchange blog - FX industry thought leadership

All the latest business and technology views and insights on the FX industry from LMAX Exchange management and staff

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  • Daily FX Market Commentary

    Good Morning, LMAX Close USDJPY 109.622 | EURUSD 1.11291 | AUDUSD 0.6918 | NZDUSD 0.65087 | USDCAD 1.35004 | USDCHF 1.00794 | GBPUSD 1.26081 | LMAX highs and Lows 05.00 GMT                                 Highs | Lows EURUSD               1.11403 | 1.11259 USDJPY                 109.623 | 108.95              GBPUSD               1.26146 | 1.26041 USDCHF               1.00784 | 1.00519 AUDUSD              0.69200 | […]

  • LMAX Exchange CEO speaking at the World Exchange Congress – part 1

    LMAX Exchange CEO, David Mercer, gave a speech at the World Exchange Congress 2015, on global capital markets and specifically about the FX market,  the world’s largest asset class. David puts forward the view that the long-term future of FX trading lies on exchange, as it  delivers the highest level of transparency and certainty of execution, compared to ECNs, dark pools or voice trading.

    He continues, the FX market is under pressure due to lack of trust in the market place, and it is important for capital markets and FX markets to regain it. There’s a lack of transparency in FX,  a lack of transparency that can only exist in a bilateral OTC market place; and the opaque practice of ‘last look’, an option to reject or  re-quote an order by market makers, that further drives down the level of transparency in the market and reduces the certainty of execution. ‘Last Look’ is a relic of history and with it you can never prove best execution, it’s a one way option, to the benefit of a few but to the detriment of the many.

    David states that LMAX Exchange fundamentally believes in a market structure that allows equal access and best execution, and by offering greater transparency, LMAX Exchange can be the change that the customer requires today. In terms of regulation, David suggests that regulators need to look at the spot market first rather than starting with Swaps and NDFs. He believes that by solving the spot market – by default one will solve the swap market.

    LMAX Exchange CEO speaking at the World Exchange Congress – part 1
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  • The public see HFT as the poorest incarnation of Big Finance. How would you change this perception?

    LMAX Exchange CEO, David Mercer, comments that the recent public perception of High Frequency Trading as being the poorest incarnation of Big Finance could be the result of particular journalistic approach and the reality is that HFT is here to stay. David states, the markets require liquidity and the best liquidity providers are the best high frequency market makers, who incidentally are situated in banks and proprietary trading firms with no differentiator. It could be public perception can be changed with a combination of greater education and more responsible journalism.

    David Mercer, LMAX Exchange CEO, shares insights.
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  • Is the impact of HFT good or bad for the FX market?

    LMAX Exchange CEO, David Mercer, states that the impact of High Frequency Trading is good for the FX market. There is no better time to be a customer in the market, the cost of trading has been driven down, allowing prices to become more accessible whilst providing a greater degree of price discovery than ever before.

    David Mercer, LMAX Exchange CEO, shares insights.
    Is the impact of HFT good or bad for the FX market?

  • CEO, David Mercer, shares the LMAX Exchange growth story

    LMAX Exchange CEO, David Mercer, talks about the journey the company has taken in recent years: the opportunities and challenges faced along the way, leading change and disrupting the financial trading industry, and the persistence to challenge conventions, resulting in 307.8% growth between 2010/11 and 2013/14 and LMAX Exchange topping the 2014 Sunday Times Tech Track 100 list.

    David Mercer, LMAX Exchange CEO, shares insights.
    Is the impact of HFT good or bad for the FX market?

  • Do the new regulations create reluctant market makers?

    LMAX Exchange CEO, David Mercer, comments that despite new regulations it is uncommon for market makers to be reluctant in the FX market. David states incentivising market makers is still yet to be encountered in FX and currently the difficulty could be perceived as the onboarding of buy side clients.

    David Mercer, LMAX Exchange CEO, shares insights.
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  • LMAX Exchange CEO, David Mercer, on providing efficient market access for small institutional clients

    LMAX Exchange CEO, David Mercer, on providing efficient market access for small institutional clients – at Profit & Loss Forex Network, Chicago, Sept 2014.

    David Mercer, LMAX Exchange CEO, shares insights.
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  • Financial News’ trading & technology rising stars

    Financial News has named Sam Adams, LMAX Exchange Head of Software Engineering, as a ’40 under 40′ rising star. The editorial includes individuals throughout the financial technology sector, at the forefront of steering their divisions to success. Go to Financial News to read the full article.

  • NFP live at LMAX Exchange

    LMAX Exchange CEO, David Mercer, comments ahead of the release of the US Nonfarm Payroll figure on August 1st 2014. David speculates the potential market movements before providing live commentary as the NFP figure is announced.

    David Mercer, LMAX Exchange CEO, shares insights.
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  • The cost of trade

    Colin Lambert, Editor of Profit & Loss, interviews David Mercer, LMAX Exchange CEO, on his thoughts regarding the shift towards clients focusing more on the cost of trade. David comments that the revenue generated begins with the spread, and in the last five to ten years as spreads have tightened there is now a natural shift towards clients focusing on the cost to trade, which includes the cost to report, the cost to clear and the aggregation fees associated.

    David Mercer, LMAX Exchange CEO, shares insights.
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