LMAX Exchange Announces a Management Buyout Transaction
London, December 2012 – LMAX Exchange (“the Company”), the leading FSA regulated Multilateral Trading Facility (“MTF”) for FX and metals, announces today that it has successfully agreed a Management Buyout (“MBO”) transaction, subject to FSA approval.
- Management of LMAX Exchange agree to buy majority stake from Betfair.
- MBO backed by private investors including Betfair co-founder Ed Wray.
- Betfair to retain a 33% stake in the Company.
- Company has seen 7 quarters of consecutive growth, and over 20% monthly growth in trading volumes, revenues and client numbers since October 2011.
- Balance sheet remains strong with a very healthy capital adequacy surplus.
The management team of LMAX Exchange led by CEO David Mercer, along with private investors including Betfair co-founder Ed Wray, has agreed to buy a majority stake in LMAX Exchange from Betfair.
The transaction is a positive milestone for LMAX Exchange, which is 16 months into a fully funded three year business plan. Since David Mercer took over as CEO in April 2011 the company has seen 7 quarters of consecutive growth. It has consistently outperformed its growth targets, delivering over 20% monthly growth in trading volumes, revenues and client numbers since October 2011.
LMAX Exchange retains a strong balance sheet. In compliance with FSA regulations, it continues to hold a healthy capital adequacy surplus, and holds all private client funds in segregated accounts.
Betfair will retain a 33% stake in LMAX Exchange. Betfair also retains Tradefair, the financial spread betting business, which is a cross-sell product for their existing customer base.
David Mercer, CEO of LMAX Exchange, commented:
“This is an exciting time for everybody involved with LMAX Exchange, including staff, clients and partners. From the perspective of our customers and MTF members it’s business as usual. We have demonstrated traction and an ability to perform to the business plan over the last 16 months and we look forward to continuing that momentum.
“LMAX Exchange has clearly benefited from being part of the Betfair group. However, our new status as an employee-owned company gives the business the required flexibility to rapidly grow and evolve. We have a clear strategy and roadmap to build LMAX Exchange into a leading FX venue globally in three to five years.”
Ed Wray, Betfair co-founder and LMAX Exchange shareholder, said:
"The LMAX Exchange business has great momentum. As a result, and as a long standing passionate advocate of the exchange model, I am very excited to be part of the team buying the business and look forward to it going from strength to strength in the next couple of years."
About LMAX Exchange
LMAX Exchange is the leading FSA regulated MTF for FX and metals. Established to deliver the benefits of exchange quality execution, LMAX Exchange offers complete pre and post-trade transparency, precise execution and a level playing field for all market participants.
Customers benefit from superior low latency trading with an average trade execution speed of less than 3ms in over 60 FX pairs and no ‘last-look’ or rejections.
LMAX Exchange offers multiple connectivity options: Direct APIs (.NET, Java), FIX 4.4, leading MT4 bridge providers, Web GUI.
LMAX Exchange – The professional FX exchange*. www.lmax.com
*LMAX Limited operates a Multilateral Trading Facility (MTF). Authorised and regulated by the Financial Services Authority, Registered No. 509778.
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:
2018, 2017, 2013 Best Execution Venue – Forex Magnates Awards more
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
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).