FX Week, January 2014 - Global foreign exchange volumes could double by 2020 due to growth in emerging markets (EM) currencies in Asia and Russia, according to David Mercer, chief executive of trading platform LMAX Exchange, which has added ruble and offshore renminbi (CNH) to its list of traded currencies to benefit from the surge in volumes.
The multilateral trading facility is also set to expand into other FX instruments, such as swaps and non-deliverable forwards, in the near future. The platform currently has 65 currency pairs available for spot trading.
“Daily turnover of FX reached $5.3 trillion in 2013, a 35% increase from 2010, and is set to grow in 2014 and beyond. This growth will be driven by emerging markets in 2014, with Asia and Russia being two key markets,” says Mercer.
LMAX Exchange will have to compete for flows in the ruble with EBS and the Moscow Exchange, two of the biggest players in the currency, but Mercer says the huge growth potential means that there will be enough flows to go around.
“We’ve seen more than 50% of our client acquisitions coming from eastern Europe and Asia-Pacific regions, so there is interest in the ruble and there is interest in CNH. That said, like every other venue, the majority of flows are through the majors, but clients want an array of spot products and beyond that they will be looking for products that aren’t spot, whether they be non-deliverable forwards, swaps or futures,” he says.
LMAX Exchange, which does not publicly report volumes, has hit average daily volume highs of $10 billion, while the launch of LMAX Interbank last year has given Mercer encouragement for its ability to eventually compete with incumbent venues. Furthermore, the expansion into new FX products will be essential to be able to compete with demand from EM regions, he says.
“Down the line, we’re looking to expand that product range. In terms of geographic territories, we’ll be looking to expand our operational presence into the Asia-Pacific region in 2014, and when we do that it’ll be important we have as wide a range of assets and products offered as possible. We need to offer market access to our growing and diverse client base.”
For further information please contact:
LMAX Exchange (London):
Barbara Pozdorovkina T: +44 20 3192 2510 E: firstname.lastname@example.org
About LMAX Exchange
Recognised as one of the UK’s fastest growing technology firms, LMAX Exchange is the leading MTF for FX, authorised and regulated by the FCA. Servicing funds, banks, brokerages and asset managers, LMAX Exchange delivers firm liquidity, anonymous exchange quality execution and a secure, transparent level playing field to all market participants, regardless of status, size or activity levels.
The LMAX Exchange open order book is driven by no ‘last look’ limit-order liquidity from top tier banks and non-bank financial institutions. Orders are executed in price/time priority with real time streaming continuous market and trade data published to all members. Offering a comprehensive range of instruments including spot FX, precious metals, commodities and equity indices, LMAX Exchange operates a global FX exchange infrastructure with matching engines in London, New York and Tokyo.
LMAX Exchange - a unique vision for global FX.
Business growth awards:
2016, 2015 Winner – Deloitte UK Technology Fast 50 more
Deloitte UK Technology Fast 50 is a ranking of the 50 fastest-growing technology companies in the UK, based on percentage growth of fiscal year revenues over the last four years. close
2015, 2014, 2013 Fastest Growing Tech Company in the UK – The Sunday Times Tech Track 100 more
LMAX Exchange has been recognised amongst the UK’s fastest growing technology firms for three consecutive years. Tech Track 100, compiled by Fast Track annually and published by the Sunday Times each September, lists Britain’s 100 fastest-growing private tech companies based on sales growth over the last three years. close
2016, 2015 Winner – Deloitte EMEA Technology Fast 500 more
The Deloitte EMEA Technology Fast 500 pre-eminent technology awards program is a ranking of Europe, the Middle East, and Africa's fastest-growing technology companies based on percentage revenue growth over three years. close
FX industry awards:
2017, 2016, 2015, 2014, 2013 Best FX Trading Venue - (ECN/MTF) – Fund Technology and WSL Awards more
LMAX Exchange has been awarded The Fund Technology and WSL Awards “Best FX Trading Venue - ECN/MTF” for five consecutive years. The awards honour excellence among providers to the institutional trading industry. close
2016, 2015, 2014, 2013 Best Margin Sector Platform – Profit & Loss Readers' Choice Awards more
LMAX Exchange has been awarded The Profit & Loss Readers’ Choice Awards “Best Margin Sector Platform” for four consecutive years. These awards are voted on by the readers and recognise excellence within the foreign exchange industry throughout the previous year. close
2014 Best Infrastructure/Technology Initiative – WSL Institutional Trading Awards more
LMAX Exchange has been awarded The Wall Street Letter Institutional Trading Awards “Best Infrastructure/Technology Initiative” in 2014. WSL awards honour excellence among providers to the institutional trading industry. close
Financial technology awards:
2016 Best Trading & Execution – HFM US Technology Awards more
The HFM US Technology awards recognise hedge fund technology providers that have demonstrated exceptional customer service and innovative product development in the past 12 months. close
2013 Best Overall Testing Project – The European Software Testing Awards more
2011 Best Trading System – Financial Sector Technology Awards more
The FST Awards recognise excellence and innovation in the field of information technology within the UK and EMEA financial services sector. close
LMAX Limited operates a multilateral trading facility (MTF). Authorised and regulated by the Financial Conduct Authority, FCA Registered no. 509778.