LMAX Group has reported record results for the first half of 2020, turning in a gross profit of $28.9 million, up 10% from the same period in 2019, statutory EBITDA of $13.5 million (up 13%) and an EBITDA margin of 47%. For 2019 as a whole, the group reported gross profit of $56.3 million and EBITDA of $26.2 million.
The growth was driven by increased trading on the firm’s platforms, FX volume rose to $2.3 trillion in H1, a 33% increase year-on-year and close to $13 billion per day. The group says FX volume increase was driven by growth in the institutional space, with volume climbing 66% compared to H1 2019. Investment manager volumes, trading via bank algos rose108%, while North America saw the highest growth in activity, rising by 165% year-on-year.
LMAX Digital, the group’s cryptocurrency platform, saw volumes surge – albeit from a lower base – by 106% to $36 billion. The group says LMAX Digital is seeing record numbers of new clients and now works with more than 200 organisations trading cryptocurrencies globally.
“These record results illustrate the success of our distinctive business model,” says David Mercer, CEO of LMAX Group. “Our institutional segment continues to demonstrate attractive growth, which, during the recent market volatility, highlights the value clients place on our order-driven firm liquidity and transparent, precise, consistent execution.
“We have seen growth in new large institutional clients around the world trading on our execution venues and the deepening of existing relationships,” he continues. “This is attributed to the quality of the liquidity and execution we offer across exchanges, and the resilience of our technology infrastructure, which has performed well through the pandemic.
“We continue to look for ways to revolutionise capital markets, with some notable successes,” Mercer adds. “In the two years since LMAX Digital launched, it has become the leading crypto currency exchange for institutional market participants and has secured its position as the primary price discovery venue. LMAX Weekend FX service, which launched in June 2020, enables market participants to capitalise on FX movements over the course of a weekend, and is already showing early encouraging signs.”
Unsurprisingly, Mercer is pleased with the results, but he stresses, “We remain future focused. Despite the uncertain global economic outlook, LMAX Group remains well positioned to continue on its current growth trajectory. We will achieve this by serving the evolving needs of our clients across the breadth of our unique offering, while making targeted investments in strategic growth opportunities.”