LMAX Digital, a regulated institutional crypto currency exchange and part of the LMAX Exchange Group, has announced it reached record trading volumes during the month of May. A record $5 billion was traded on LMAX Digital in the month, with a record high of over $400 million in daily spot volumes achieved on 12 May 2019. The firm says this is more than double April’s volumes which stood at $2.2 billion.
LMAX Digital puts the surge in activity down to the return of volatility in the cryptocurrency markets and comes from a combination of proprietary trading firms and Asian brokers who have been increasing their interest in digital currencies over the past few months.
“There has been a marked shift to quality in the past month with institutional customers switching from Altcoins into Bitcoin and diverting more of their flow to trusted, regulated exchanges like LMAX Digital,” says Jenna Wright, head of LMAX Digital. “LMAX Digital currently has a rich pipeline of institutional clients and we have had to increase our on-boarding team in London and Gibraltar to cope with the unprecedented demand.”
LMAX Digital launched in May 2018 and in just over 12 months has completed more than six million trades and broke even in the fifth month of operations, it now serves 190 institutional clients around the world.
“I couldn’t be more pleased with the growth of LMAX Digital at this early stage,” says David Mercer, CEO of LMAX Exchange Group. “We believe cryptocurrencies will revolutionise capital markets in decades to come. The third wave of institutional demand is yet to commence in earnest and it might be some years before crypto currencies are readily accepted and traded by the world’s biggest institutions.
“The activity we are seeing is generally from smaller, more agile tech-enabled institutions wishing to exchange risk with each other in larger size than they might see on retail platforms,” he continues. “Their expectations of low latency, efficient price discovery and deep liquidity are met by the LMAX Exchange Group technology stack which has been employed for LMAX Digital. LMAX Digital benefits from the $100m proprietary technology investment the Group has made in the past seven years.
“Being a regulated, trusted market operator and custodian is a core requirement of our clients and May’s trading volumes are a testament to the level of trust clients feel when trading with our globally regulated Group,” Mercer adds. “We will be patient with this business and expect real success to come as distributed ledger technology and digital assets pervade institutional capital markets. We believe LMAX Digital is unique in the space and the only credible choice for large Investors.
“There will no doubt be bumps in the road as we engage in the second industrial revolution of our lifetime but I am certain LMAX Digital will have a large part to play as the crypto market moves into the mainstream,” Mercer concludes. “LMAX Digital represents only 2% of our global revenues today but I see no reason why it couldn’t surpass our core FX business in the next five years.”