Statement of commitment to the FX Global Code
London, 5 April 2017 – As the leading FCA regulated MTF for FX, operating a central limit order book with no ‘last look’, LMAX Exchange is committed to serve as the industry’s best practice for transparency and fairness in FX execution and to lead, by example, the positive reforms aimed at restoring trust and integrity in the FX marketplace.
It is from this stance that LMAX Exchange is now the first FX market participant to commit to the upcoming FX Global Code (Code) after we have been assured that the Code will be updated post-publication. Shortly after the publication of the Code on 25 May 2017, we will update our Rulebook with the statement of commitment to the code, to reflect our support and adherence:
“LMAX Exchange (“Institution”) has reviewed the content of the FX Global Code (“Code”) and acknowledges that the Code represents a set of principles generally recognised as good practice in the wholesale foreign exchange market (“FX Market”). The Institution confirms that it acts as a Market Participant as defined by the Code, and is committed to conducting its FX Market activities (“Activities”) in a manner consistent with the principles of the Code. To this end, the Institution has taken appropriate steps, based on the size and complexity of its Activities, and the nature of its engagement in the FX Market, to align its Activities with the principles of the Code.”
In addition to the above stated commitment, LMAX Exchange would also like to highlight that its current Rulebook and operations go beyond the Code, as the LMAX Exchange business model does not permit ‘pre-hedging’ and ‘last look’ practices.
Though LMAX Exchange does not believe that the Code goes far enough, we welcome its introduction as a positive starting point for restoring trust in the FX industry and creating globally consistent guidance.
Throughout our engagement with the BIS FXWG, more specifically our communication with Guy Debelle and David Puth regarding the Code’s draft, we were advocating for eradication of ‘pre-hedging’ and ‘last look’ from the FX marketplace.
So in recent weeks, we were disappointed to learn that, the Code will include wording in Principle 17 that permits both ‘pre-hedging’ and ‘last look’ and more importantly doesn’t outlaw pre-hedging during the ‘last look’ window. Subsequently however, we have been assured that Principle 17 will be reviewed soon after the Code is published, with a more restrictive stance on the use of ‘pre-hedging’ as the likely outcome.
LMAX Exchange looks forward to positively engaging with the process to further strengthen and improve the Code post publication.
For further information, please contact:
Tom Nutt T: +44 (0) 20 7199 6191 E: [email protected]
Barbara Pozdorovkina T: +44 (0) 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).