LMAX expands APAC infrastructure ahead of NDF offering

Rick Steves

“Our Singapore matching engine brings us closer to clients in the region and since launch we have seen 3x growth in our FX trading volumes month on month.”

LMAX Group is expanding its global technology infrastructure in Asia Pacific following the launch of a matching engine in the Equinix IBX Data Centre in Singapore (SG1).

This is the latest infrastructure investment to ensure efficient price discovery and consistent, low latency execution for global customers of the operator of institutional exchanges for trading FX and digital assets.

LMAX eyes APAC corridor between its twin hubs TY3 and SG1

SG1 is the fourth matching engine run by LMAX Group. It has gone live earlier this year and it is intended to bring greater access for clients to deep regional institutional liquidity and the ability to trade on a Central Limit Order Book (CLOB) with streaming real-time, firm limit order liquidity from top tier global banks and non-banks.

It was in 2014 that LMAX entered the Asia Pacific by launching a matching engine in Tokyo, TY3. In 2015, the group opened its regional hub in Singapore.

The addition of SG1 to its infrastructure footprint builds regional liquidity and adds significant value for the local financial ecosystem. LMAX Group sees further potential to enhance market access to this institutional liquidity by establishing an Asia Pacific corridor between its twin hubs (TY3 and SG1).

LMAX plans NDFs in Q1 ’23, Digital and Broker offering in Q2 ’23

According to the firm, SG1 has already gained significant traction locally and has a strong pipeline of institutional customers looking to onboard, including banks, proprietary trading firms, brokerages and asset managers.

LMAX Group offers spot FX trading in SG1 but intends to bring its global trading capabilities to the region through an expanded range of products, including non-deliverable forwards (NDFs) in early 2023, subject to obtaining a Recognised Market Operator (RMO) license from the MAS.

Also subject to the Singapore regulator’s approval, LMAX plans to extend its global Digital and Broker offering to the wider Asia Pacific region from Singapore in Q2 2023.

Unique multi-asset liquidity offering

David Mercer, CEO of LMAX Group, said: “Singapore is the largest FX trading centre in Asia Pacific and a major FX centre globally. We recognise the strong demand for deep institutional liquidity and transparent, efficient price discovery that the CLOB execution model delivers to market participants in the region. Furthermore, we have seen considerable growth in trading volumes in our TY3- based exchange, with increasing participation from both global and local financial institutions. Over time, we aim to establish a unique multi-asset liquidity offering for the region, combining our capabilities, distribution and infrastructure across both Japan and Singapore to benefit our global customer base.”

Quentin Miller, Managing Director, Asia Pacific, at LMAX Group, commented: “Our Singapore matching engine brings us closer to clients in the region and since launch we have seen 3x growth in our FX trading volumes month on month. We are excited by the opportunities that lie ahead and are focused on building our presence in APAC, delivering a competitive range of products and services to meet the increasing needs of institutions locally.”

Lim Cheng Khai, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore (MAS), added: “We welcome the launch of LMAX Group’s matching engine in SG1 to deepen the liquidity of the FX market in Singapore and support the needs of market participants in the region. Singapore has cemented our position as the third largest global FX centre, and LMAX Group will be a significant addition to the attractiveness and vibrancy of our FX ecosystem.”

Read this next

Executive Moves

CMC Markets taps Finalto’s Julia Free to head UK compliance

CMC Markets PLC (LSE:CMCX) has onboarded Julia Free as its newest head of UK compliance as part of a broader organizational reshuffling at the UK’s biggest spread better.

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

<