LMAX Exchange announces record high profitability in 2016

London, May 2017 – Today, LMAX Exchange, one of UK’s fastest growing financial technology firms and the leading MTF for FX trading, is pleased to announce record high profitability with reported annual EBITDA of £5.6m in 2016. This marks the company’s strongest financial performance to date and demonstrates its rapidly expanding footprint in the global FX market – particularly remarkable in the face of a difficult period for the spot FX industry, which has seen a volume decline of 19% over the last 3 years.

2016 highlights include

• EBITDA of £5.6m, up 300% year-on-year
• Gross profit of £20.8m, up 33% year-on-year
• Strong growth in the institutional segment, volumes up 52% year-on-year
• Completion of global exchange infrastructure with the addition of a matching engine in New York
• Continued leadership in the campaign to eradicate practices open to market abuse

Five year annually compounded growth results (2012-2016) demonstrate

• Gross profit: 61% annual growth
• Notional volumes: 44% annual growth
• Client funds: 30% annual growth

The above performance has been delivered following a significant investment in technology, geographical expansion and product diversification which created a greater breadth of services and a wider addressable market in 2016:

• The completion of the bilateral clearing project has enhanced the company’s presence in the institutional segment and has led to a 52% increase in volumes from this customer segment, which remains the core growth focus for the firm into 2017;
• The September 2016 launch of the North American matching engine in New York (NY4) was a key strategic geographical move. This new liquidity pool for institutional spot FX trading, enabled North American clients to trade on LMAX Exchange with unique, no ‘last look’ limit order liquidity;
• The continued investment in building market presence in AsiaPac, including growth of the Tokyo-based exchange (launched in 2015), has led to a 55% growth in volumes for the region.

David Mercer, CEO of LMAX Exchange commented,

“2016 was a good year for LMAX Exchange. We were able to build on our technology investments in 2015, continue our strong growth and expand our capabilities to new markets. In addition, we were able to deliver for the institutional marketplace and drive volumes in Asia.

This was all achieved against the backdrop of market uncertainty and volatility that we were well positioned to benefit from. Finally, we continued to champion transparency and fairness in the global FX industry as a fundamental belief of the business.

Looking forward through 2017, we are seeing sustained volume growth and significant institutional uptake in all markets.”

In the broader industry context, LMAX Exchange continued to campaign for the need to rid the market of practices open to abuse, such as ‘last look’ and ‘pre-hedging’, in order to increase transparency and regain customers’ trust following a few scandal ridden years. In addition to the regularly published thought leadership reports and the ongoing dialogue with BIS FXWG and the FEMR Working Group representatives from the Bank of England, FCA and HM Treasury, LMAX Exchange recently became the first organisation to publicly commit to the upcoming Global Code of Conduct.

Looking ahead, LMAX Exchange is aiming to lead the development of the Transaction Cost Analysis (TCA) methodology for foreign exchange. This work will see the company launch a whitepaper in May 2017 proposing a comprehensive, new set of metrics for analysing execution quality and trading costs on firm and ‘last look’ liquidity. Highly anticipated industry research, this white paper is intended to contribute to an industry-wide debate on how to conduct TCA in a way that benefits the customer, provides a fair comparison for liquidity providers and creates genuine transparency: one that enables choice and aids quality decision making.

Download as a PDF –

Media Contacts

For further information, please contact:

Seven Hills:

Tom Nutt T: +44 (0) 7775 686 706 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.

2024

Best Execution Venue – Finance Magnates Awardsmore

LMAX Group has been awarded Best Execution Venue for the fourth consecutive year by Finance Magnates at its annual London Summit Awards ceremony. The awards highlight leading participants in the industry as voted for by peers.close

Best Cryptocurrency Exchange – Finance Magnates Awardsmore

LMAX Digital has been awarded Best Cryptocurrency Exchange for 2024 by Finance Magnates at its annual London Summit Awards ceremony. The awards highlight leading participants within the crypto space as voted for by industry peers.close

The World’s Best Trading Firm for FX Liquidity – Euromoney Foreign Exchange Awardsmore

LMAX Exchange has been awarded The World’s Best Trading Firm for FX Liquidity at the Euromoney Foreign Exchange Awards 2024. Judged by a panel of global experts, the awards celebrate excellence and innovation in the global FX market. close

Application Performance – Speeds & Feeds – Azul Java Hero Awardmore

LMAX Group has been selected as the winner of the 2024 Azul Java Hero Award: Excellence in Application Performance – Speeds & Feeds. The awards recognise individuals and organisations that demand more, expect more, and get more from Java. close

Exchange of the Year – Hedgeweek Global Digital Assets Awardsmore

LMAX Digital has been awarded Exchange of the Year at the Hedgeweek Global Digital Assets Awards 2024. The awards recognise excellence in the fields of fund performance and service provision in the digital assets space. Voted on by participants in the financial services industry. close

2023

40 Top Innovators in Financial Markets – TabbFORUMmore

LMAX Group CEO, David Mercer has been named, for the second year running in the TabbFORUM 40 Top Innovators in Financial Markets. This second annual list recognises the achievements and influence of 40 outstanding disruptors and difference-makers having the greatest impact at the intersection of finance and technology. close

Best Execution Venue – Finance Magnates Awardsmore

LMAX Group has been awarded Best Execution Venue for 2023 by Finance Magnates at its London Summit Awards ceremony. The awards spotlight and garner attention for leading participants that have excelled across key segments, and are voted by industry peers.close

Best Cryptocurrency Exchange – Finance Magnates Awardsmore

LMAX Digital has been awarded Best Cryptocurrency Exchange for 2023 by Finance Magnates at its London Summit Awards ceremony. The awards spotlight and garner attention for leading participants that have excelled across key segments, and are voted by industry peers.close

Best Crypto Trading Platform – Financial News Awardsmore

For the second year running, LMAX Digital has been awarded “Best Crypto Trading Platform” by leading industry publication, Financial News in its Excellence in Trading & Tech Awards. The awards are voted on by a panel of independent judges and senior editorial staff, and celebrate the companies and individuals that stand out for the strength of their businesses in Continental Europe and the UK.close

Best Exchange – Hedgeweek European Digital Assets Awardsmore

LMAX Digital has been awarded Best Exchange at the Hedgeweek European Digital Assets Awards. The awards provide a unique insight into the most highly-regarded and successful fund managers and service providers in the digital assets space. The awards are voted on by participants in the financial services industry.close

2022 - 2021

40 Top Innovators in Financial Markets – TabbFORUMmore

LMAX Group CEO, David Mercer has been named in the TabbFORUM 40 Top Innovators in Financial Markets, recognised as one of the technology-driven innovators, disruptors and difference-makers having the greatest impact in the sector. close

Best Exchange (Innovation) – Hedgeweek European Digital Assets Awardsmore

LMAX Digital has been awarded the Hedgeweek European Digital Assets Awards “Best Exchange (Innovation)”. The awards are granted to the top firms in their categories and announced at their annual awards ceremony.close

Best Crypto Trading Platform – Financial News Awardsmore

LMAX Digital has been awarded the 2022 Financial News Awards “Best Crypto Trading Platform”. The awards are presented to the best-performing providers in their category.close

Best Execution Venue – Finance Magnates Awardsmore

LMAX Group has been awarded the Finance Magnates Award “Best Execution Venue” for 2022. The awards are presented to the best-performing firms in their categories and announced at the annual summit in London.close

Best Execution Venue – Global Forex Awards B2B more

LMAX Group has been awarded the 2022 Global Forex Awards B2B “Best Execution Venue”. The awards are presented to the best-performing providers in their category as voted on by business customers, traders and investors globally.close

Best Execution Venue – Finance Magnates Awardsmore

LMAX Global has been awarded the Finance Magnates Award “Best Execution Venue” for 2021. The awards are granted to the top firms in their categories and announced at the annual London summit.close

2020 - 2019

Best Cryptocurrency Exchange – Finance Magnates Awardsmore

LMAX Digital has been awarded the Finance Magnates Awards “Best Cryptocurrency Exchange”. The awards are granted to the top firms in their categories and announced at the annual London summit.close

Best Institutional Digital Asset Platform – Profit & Loss Readers' Choice Awardsmore

LMAX Digital has been awarded The Profit & Loss Readers' Choice Awards “Institutional Digital Asset Platform”. These awards are voted on by the readers and recognise excellence within the foreign exchange industry throughout the previous year. close

Crossover Award for Best Crypto/Fiat Initiative – Profit & Loss Readers' Choice Awardsmore

LMAX Group has been awarded The Profit & Loss Readers' Choice Awards “Crossover Award for Best Crypto/Fiat Initiative”. These awards are voted on by the readers and recognise excellence within the foreign exchange industry throughout the previous year. close

Best Anonymous Matching Platform – Profit & Loss Reader' Choice Awardsmore

LMAX Group has been awarded The Profit & Loss Readers' Choice Awards “Best Anonymous Matching Platform”. These awards are voted on by the readers and recognise excellence within the foreign exchange industry throughout the previous year.close

Best Execution Venue – Finance Magnates Awardsmore

LMAX Group has been awarded the Forex Magnates Awards “Best Execution Venue”. The awards are granted to the top firms in their categories and announced at the annual London summit.close

2018 - 2017

Best Crypto Solution Provider – Finance Magnates Awardsmore

LMAX Exchange has been awarded the Finance Magnates Awards “Best Institutional Crypto Solution Provider”. The awards are granted to the top firms in their categories and announced at the annual London summit.close

Best Margin Sector Platform – Profit & Loss Readers' Choice Awardsmore

LMAX Group has been awarded The Profit & Loss Readers' Choice Awards “Best Margin Sector Platform” for five consecutive years. These awards are voted on by the readers and recognise excellence within the foreign exchange industry throughout the previous year.close

2016 - 2015

Best Trading & Execution Technology – HFM US Technology Awardsmore

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

Best FX Trading Venue (ECN/MTF) – WSL Awardsmore

LMAX Group has been awarded The Fund Technology and WSL Awards “Best FX Trading Venue ­ ECN/MTF”. The award honours excellence among providers to the institutional trading industry. close

Deloitte UK Technology Fast 50 – Deloitte 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

Deloitte EMEA Technology Fast 500 – Deloittemore

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

Fastest Growing Tech Company in the UK – The Sunday Times Tech Track 100more

LMAX Group 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

Recognised as a Tech City Future Fifty company – Tech City UK Future Fiftymore

LMAX Group is part of the Future Fifty programme, focused on accelerating the success of high-growth tech businesses.close

2014 - 2013

Best Infrastructure/Technology Initiative – WSL Institutional Trading Awardsmore

LMAX Group 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

Best Overall Testing Project – The European Software Testing Awardsmore

The European Software Testing Awards (TESTA) recognise excellence and innovation in the software testing and quality assurance across a variety of industries.close

2012 - 2011

Best Trading System – Financial Sector Technology Awardsmore

The FST Awards recognise excellence and innovation in the field of information technology within the UK and EMEA financial services sector.close

Innovative Programming Framework – Oracle Duke's Choice Awardsmore

Oracle's Duke's Choice Awards celebrate extreme innovation in the world of Java technology and are granted to the most innovative projects using the Java platform.close

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).