LMAX eyes US market play
Wall Street Letter, June 2013 – A US-based matching engine may be in the cards for LMAX Exchange, the London-based multi-lateral trading facility for foreign exchange, according to CEO David Mercer.
The company is looking into New York as the location for a new matching engine, he said. “All the major players have matching engines in London and New York,” he added. The company will first build up the business in London to create a solid base, he said, adding the US play would likely be next year.
“We need to be in New York at some stage in the next 12 to 18 months,” he said. The company has been considering such an expansion for a while, factoring the potential expansion into decisions about which data center to use, he explained. “We chose the LD4 data center [Equinix’s data center in Slough, UK] because of its cross connection to NY4 [the Equinix data center in Secaucus, NJ].”
The new location would follow the launch earlier this year of the MTF’s second venue, LMAX Interbank, which targets bank-only trade matching.
The platform is based on LMAX’s existing software and the target audience was, in some cases, already using LMAX Professional, the original platform targeting brokers, fund managers and proprietary firms. After four months in operation, the venue has 15 banks participating, Mercer said.
Traction so far has come from firms that are familiar with the MTF, and the fact that liquidity providers look to connect to major platforms, Mercer said.
Going forward geography will be a big driver of the business and the increase in buy-side institutions using FX as an asset class to support fundamental strategies, he added.
“When they use FX, there’s huge liquidity, so right or wrong they’re not stuck in a position, can get in and out quickly and there’s no limit to size,” Mercer said.
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).