LMAX Exchange chief executive predicts FX volumes will double by 2020
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: [email protected]
About LMAX Exchange
LMAX Exchange Group is a dynamic, visionary and award-winning financial technology company. Recognised as one of the UK’s fastest growing technology firms, LMAX Exchange is leading the transformation of the global FX industry to transparent, fair, precise and consistent execution. Operating one global marketplace for trading FX, metals, indices and commodities, LMAX Exchange delivers open access, transparency and a level playing field to all market participants.
LMAX Exchange Group offers all clients the ability to trade on LMAX Exchange central limit order book, driven by streaming no ‘last look’ limit-order liquidity from top tier banks and non-bank financial institutions. Servicing funds, banks, brokerages, asset managers and proprietary trading firms, LMAX Exchange offers an anonymous, regulated, rules-based trading environment, order execution in strict price/time priority, and access to real-time streaming market and trade data, enabling all market participants to control execution quality and total trading costs.
Offering a comprehensive range of instruments and ultra-low latency execution, 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.
Financial technology awards:
2017 Best FX Trading Venue - (ECN/MTF) – Fund Technology and WSL Awards more
2016 Best Trading & Execution Technology – HFM US Technology Awards more
2013 Best Overall Testing Project – The European Software Testing Awards more
2011 Best Trading System – Financial Sector Technology Awards more
FX industry awards:
2017, 2016, 2015, 2014, 2013 Best FX Trading Venue - (ECN/MTF) – WSL Awards more
2017, 2016, 2015, 2014, 2013 Best Margin Sector Platform – Profit & Loss Readers' Choice Awards more
2017, 2013 Best Execution Venue – Forex Magnates Awards more
2014 Best Infrastructure/Technology Initiative – WSL Institutional Trading Awardsmore
Business growth awards:
2016, 2015 Winner – Deloitte UK Technology Fast 50 more
2016, 2015 Winner – Deloitte EMEA Technology Fast 500 more
2015, 2014, 2013 Fastest Growing Tech Company in the UK – The Sunday Times Tech Track 100 more
LMAX Exchange Group is the holding company of LMAX Limited and LMAX Broker Limited.
LMAX Exchange is a trading name of LMAX Limited, which operates a multilateral trading facility, authorised and regulated by the Financial Conduct Authority (firm reference number 509778) and is a company registered in England and Wales (number 6505809).
LMAX Global is a trading name of LMAX Broker Limited which is authorised and regulated by the Financial Conduct Authority (firm reference number 783200) and is a company registered in England and Wales (number 10819525).