Articles tagged by LMAX Exchange
In a release to accompany a new survey
taken by the firm, LMAX Exchange casts doubt on the ability of the FX Global
Code of Conduct to deliver industry reform in a timely fashion.
While noting that the first release ...
Strap yourselves in –
this one is a little controversial. Regular readers know I like a good FX
industry survey, the semi-annual FX turnover reports, for example, bring out
the anorak in me and I spend hours poring over the electronic ...
The FX industry proved resilient in the
wake of the volatility caused by the Brexit vote while also illustrating the
changing nature of liquidity within the market, according to speakers on a Profit & Loss webinar last week.
“One of the ...
So, back in the saddle after two weeks
without a decent Internet connection – it’s at this point that I bemoan that
fact but I’m sure you all know how upset(!) I was so I won’t bother – and ...
LMAX Exchange is expanding its infrastructure by launching a North American matching engine in the Equinix International Business Exchange data centre in New York (NY4).
The matching engine is a new liquidity pool for institutional spot FX trading, which the firm says is built specifically for funds, asset managers, brokerages and banks.
The new exchange enables North American clients to trade on, no ‘last look’ limit order liquidity. LMAX says US clients will further benefit from low latency execution, high fill rates, price improvement as standard and access to real time streaming market data.
LMAX Exchange has selected Metamako to actively monitor all incoming and outgoing FX data in the firm's core matching engine system.
LMAX is in the process of replacing its existing, passive fibre-optic based tapping solution with what Metamako calls its “more dynamic, active solution”.
By implementing Metamako's devices in New York, the firm says LMAX will benefit from the ability to monitor, broadcast and replicate data feeds. In addition, the solution will also allow LMAX to re-patch its racks and servers dynamically.
After Cable’s apparent flash crash Friday, analysts are trying to determine what caused the move and the broader impact that it could have.
In a special note put out Friday Australian-based hedge fund Hunter Burton Capital says the sterling moves are being attributed to comments made by French president, Francois Hollande, about Brexit.
“There must be a threat, there must be a risk, there must be a price, otherwise we will be in negotiations that will not end well and, inevitably, will have economic and human consequences,” commented Hollande.
LMAX Exchange has publicly committed to support the impending Global Code of Conduct in FX markets, however the operator has done so with a small caveat.
LMAX says it 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 adds that it is from this stance that it is committing to the Code, “after we have been assured that the Code will be updated post- publication”.
LMAX Exchange has reported record high profitability with reported annual EBITDA of £5.6m in 2016.
This marks the company’s strongest financial performance to date and, it says, “demonstrates its rapidly expanding footprint in the global FX market – particularly remarkable in the face of a difficult period for the spot FX industry, which has seen a volume decline of 19% over the last three years”.
The EBITDA of GBP 5.6 million is a 300% increase on 2015, the firm says that gross profit was GBP 20.8 million, up 33% year-on-year.
A new white paper released today by LMAX Exchange seeks to offer more in-depth analysis of the cost of trading in FX markets and calls for the creation of “robust, commonly-agreed” transaction cost analysis (TCA) metrics that compare and contrast the differences between executing on firm and last look liquidity.
The paper, TCA and Fair Execution: The Metrics that the FX Industry Must Use, proposes a blueprint for clients to better discern and compare the costs of trading across firm and last look venues and argues that existing TCA metrics fail to capture the nuances and value of firm liquidity.
Profit & Loss readers cast large numbers of votes this year for their preferred market makers and service providers.
Last year was the first that we changed the category description from banks to market makers to account for the larger proportion of non-banks that now comprise an important part of market making, and this is again reflected in the results. The industry’s changing dynamics are starting to show.
Voting, which spanned across time zones, was close in many categories, so we have listed the top three for each category to acknowledge the runners up.
LMAX Exchange (Lmax) has appointed Matt DellaRocca to the newly created position of liquidity manager for the Americas.
In this new role, DellaRocca will be responsible for the real-time management, monitoring and analysis of all Lmax liquidity in the US.
DellaRocca joins the firm from Bloomberg Tradebook, where he was also liquidity manager.
Commenting on the appointment, Patrick Bartle, global head of institutional sales at Lmax, says: "We are delighted to be able to attract such talent to the company, helping us anchor our expansion into the US market.”
DellaRocca adds: “I'm excited to join a team committed to transforming the FX marketplace into a transparent, level playing field for all market participants. I look forward to contributing to the growth of Lmax Exchange within the US marketplace.”
LMAX Exchange has named Scott Moffat as managing director for Asia Pacific, based in Singapore.
Part of the LMAX founding team and former chief perating fficer, Moffat will be tasked with strengthening the company’s position in the region and building upon the existing presence, including the sales and operational hub in Hong Kong and Tokyo-based exchange.
LMAX says Moffat’s appointment demonstrates the company’s commitment to the region and signifies the strategic importance of Asia Pacific to LMAX Exchange’s global growth agenda.
LMAX Exchange has unveiled a partnership with an academic at the University of Oxford to develop a methodology for consistent evaluation of trading costs across liquidity pools that can be used by the FX industry.
Dr. Álvaro Cartea of the University of Oxford’s Mathematical Institute is a leading researcher and published finance expert specialising in high-frequency and algorithmic trading, market quality and financial regulation. Together, LMAX and Dr. Cartea aim to drive forward the industry’s understanding of FX TCA and produce mathematically robust findings of practical value to benefit all FX market participants, the firm says in a statement.
As LMAX Exchange Group (LMAX) reports strong 2017 financial results, its CEO, David Mercer, insists that the firm is well positioned to compete with larger FX platforms that have been acquired by exchange groups.
LMAX’s EBITDA was £8.8m, up 58% year-on-year, and it has reported a gross profit of £25.4m, up 22% year-on-year.
This is the second consecutive year that the platform has posted significant financial growth – looked at over a two-year period, its annual EBITDA growth is 151%, will on an annual basis gross profits are up 28% and notional volumes are up 20%.
LMAX Exchange has launched what it says is the first physical cryptocurrency exchange dedicated to serving only institutional clients.
LMAX Digital, which will support bitcoin, ether, litecoin, ripple and bitcoin cash, at the request of existing institutional clients who the firm says desired a credible, efficient and trusted platform on which to trade digital currencies with like-minded institutions.
“We are furthering the legitimisation of the cryptocurrency market by offering institutions a platform on which to acquire, trade and hold cryptocurrencies securely with high quality, deep liquidity,” says David Mercer, CEO of LMAX Exchange.
LMAX Exchange has named Roland White to the newly created position of global head of institutional sales. He joins from Commerzbank where he was head of e-FX sales for eight years.
At LMAX he will report to CEO David Mercer and will be responsible for advancing the LMAX Exchange global growth agenda in the institutional segment, leading the institutional sales team and deepening relationships with institutions internationally.
In addition to his time at Commerzbank, White has, over a 28-year career, also held sales positions at EBS, Cognotec, Reuters, Citigroup and Standard Chartered.
There is one question regarding cryptocurrencies, and Bitcoin in particular, that has continued to baffle many, and has caused some skepticism amongst market commentators, namely what is the fundamental value of these assets?
Bitcoin, still by far the largest cryptocurrency that exists, is not a good store of value because the price of a bitcoin is so volatile. As a result, it functions poorly as a currency, after all, no one wants to buy something worth $100 with bitcoins if those same bitcoins are going to be worth $200 a few months later and no one wants to sell an item worth $100 for bitcoins, because those coins could be worth $50 shortly after the transaction.
LMAX Exchange has announced the launch of the LMAX Exchange Everest Rugby Challenge, hosted in partnership with Wooden Spoon, the UK’s children’s rugby charity.
Taking place in April 2019, the event will mark the first-ever attempt to set two Guinness World Records for the highest altitude rugby matches on Mount Everest. The event will aim to raise a minimum of £200,000 for Wooden Spoon, a charity committed to transforming the lives of disadvantaged and disabled children and young people across the UK and Ireland through the power of rugby.
The two records are for the highest altitude game of full contact rugby played and the highest altitude game of mixed touch rugby played.
LMAX Exchange has appointed Himanshu Kher as group treasurer, a newly-created role he began at the start of 2019.
Kher joins from IG Group, for whom he was also group treasurer and will report to Grant Pomeroy, group chief financial officer, and brings 18 years of treasury, corporate finance, risk management and stakeholder management experience from a career spent with global brokerages, banks and consulting organisations.
Prior to joining IG, Kher was a director within Group Treasury at Barclays, he has also held roles at Boston Consulting and PwC.
LMAX Exchange has added two salespeople to its roster in Asia-Pacific with the hiring of Jason Huang and Shang Lin.
Huang has joined as head of sales for Asia Pacific, based in Hong Kong, he joins from CFH Systems Asia, where, as a managing director, he established and led the firm’s Asia office.
Lin has joined as institutional sales executive for Asia Pacific, based in Singapore and joins from Refinitiv (formerly Thomson Reuters), where she focused on financial institutions and corporates for the FXall business.
LMAX Exchange has announced the addition of a global credit intermediation solution for spot FX trading.
The firm says the solution will benefit regional banks and mid-size financial institutions, who typically have limited bilateral credit relationships with larger global banks active in the institutional FX markets, by facilitating expedited access to LMAX Exchange’s central limit order book liquidity.
BNP Paribas and JP Morgan are working with LMAX as credit intermediaries to facilitate spot FX transactions with institutional counterparties in line with individual client requirements.
Now that MiFID II is in force and the industry has had time to digest the Global Code of Conduct, platform providers will face less distractions in 2019, says Galen Stops.In the second half of 2017 it seemed as though many FX market participants, on both the buy and sell sides, were forced to shelve any business plans that they might have as resources were diverted to help ensure compliance with MiFID II ahead of the deadline on January 3, 2018. Preparations for MiFID II cost an estimated $2.1bn in 2017 alone, according to a report by Expand, a Boston Consulting Group company, and IHS Markit, and this does not account for the amount of manpower and time that was also devoted to ensuring that everything was ready within these firms ahead of the deadline.
In recent years, large exchange groups have been lining up to buy OTC FX platforms. But in this game of musical chairs, what happens to the venues without a buyer when the music stops? Galen Stops reports.One of the major trends in the multi-dealer platform space in recent years has been the acquisition of these platforms by larger exchange groups. Hotspot was the first to go after it was bought by BATS Global Markets in 2015, which in turn was then acquired by Cboe Global Markets in 2017 and the FX platform was rebranded as CboeFX.
“2018 was a transitional year for foreign exchange,” reflects David Mercer, CEO of LMAX Exchange Group. The first thing he points to in order to back up this claim is the impact of new regulations, which changed the way that LMAX Exchange did business in a number of areas. For example, because of Mifid II, it had to separate its brokerage and its Multilateral Trading Facility (MTF) businesses, LMAX Global and LMAX Exchange, respectively. This process largely consisted of vast piles of paperwork as the firm was forced to re-paper clients. In addition, Mercer says that in 2018 there was a reconfigurement of the FX market structure, driven in large part by the FX Global Code and the entrance of larger exchange groups into the OTC market via platform acquisitions.