The unstoppable pace of FX on exchanges
e-Forex, July 2013 – With the incoming regulatory environment favouring centrally cleared products over OTC instruments Frances Faulds looks at how the exchanges are gearing up for continued growth.
LMAX Exchange is the leading MTF for FX, regulated by the FCA. Established to deliver the benefits of exchange quality execution to both buy-side and sell-side trading institutions, LMAX Exchange brings market participants together in an anonymous, order-driven and fully transparent environment.
The exchange style execution model, which is at the core of an MTF concept, is the most effective way to trade liquid products, such as spot FX. Just as on an exchange, orders are matched in price/time priority but trading is still bi-lateral with FX trades cleared through the prime broker network.
Furthermore, LMAX Exchange is not a market-maker, and unlike many ECNs, the open order book is driven by streaming, non ‘last-look’ limit orders supplied by our liquidity providers.
To date only LMAX Exchange has launched a truly exchange style trading model. The value proposition focuses on efficiency, fairness, trading transparency combined with ultra-low latency, precise and consistent execution.
David Mercer, CEO of LMAX Exchange, explains that, “The existing client base is mostly institutional and includes broker dealers, proprietary trading firms, money managers and funds.” However, he says “the client demand for transparent, precise, consistent, low latency execution exists across all FX client segments and this is the opportunity that LMAX Exchange is addressing”. The LMAX Exchange business model is also at the forefront of the regulatory changes that are advocating greater transparency, on-exchange trading and centralised clearing of FX derivatives. LMAX Exchange, though only for spot FX and metals, is leading the industry’s transformation towards transparency. From an execution standpoint, LMAX Exchange already offers on-exchange trading as well as pre- and post-trade transparency. From the clearing perspective, LMAX Exchange technology is set up and enables all three clearing models: prime brokerage, central counterparty (CCP) and centralised clearing through LCH.Clearnet.
In summary, LMAX Exchange addresses key industry challenges, such as the lack of transparency of the true cost of OTC traded FX, and the lack of precise consistent and reliable execution in FX trading. Expansion into other client segments, including the recently launched LMAX InterBank, extension of the global client base and potential diversification into other on-exchange traded FX products are planned.
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).