LMAX Exchange moves to expand user base
Wall Street Letter, January 2013 – LMAX Exchange, a London-based multilateral trading facility for foreign exchange and metals trading, is looking to expand its user base in the next few years, according to David Mercer, CEO.
The MTF wants to increase the number of users on its platform, especially among institutions, and it also wants to extend its reach into the interbank market, he said. The focus will require the firm to add more sales staff, Mercer added.
The trading platform was launched in 2010 with a focus on retail trading but the company relaunched in 2011 to target the institutional market after it didn’t gain traction.
In its current iteration, the platform is having success among small institutional firms, said Mercer, such as retail broker-dealers and money managers, but the company hopes to add to that base.
“There is a greenfield side for us, which is larger institutional FX and moving into the interbank market. There is no other venue at the moment that covers all three segments,” he said.
The MTF uses low latency technology, Mercer noted, adding that the average latency per trade is three milliseconds. But he acknowledged that the technology doesn’t mean anything if the business model isn’t what the users want.
LMAX offers an open order book and a model such that users stream orders onto the platform with no option for a “last look”, or an option for a liquidity provider to reject a trade in the moment before execution. Mercer said LMAX chose instead to model itself after exchanges outside the currency markets where the concept of a “last look” is not employed.
“The user gets consistent quality and efficient execution, and not just some of the time but all of the time because there is no ability to reject trades,” he said. The company will focus in the next 12-18 months on getting this message out to potential users, Mercer added.
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).