LMAX Exchange Group, a London based multilateral trading facility for forex trading, is set to launch a crypto exchange dedicated to providing services to institutional clients. The group had been getting requests from existing clients for a trustable and efficient platform to trade digital currencies with other institutions which resulted in LMAX Digital.
The crypto exchange will provide services 24×7, but only the most liquid digital coins like ETH, BTC, XRP, LTC, and BCH will be traded on the platform. The group also informed that their new venture would be governed by the specific principles and guidelines as its established operations like LMAX Exchange’s FCA regulated MTF (Multilateral Trading Facility). Security, efficiency, compliance and anti-money laundering would be the pillar stones of the exchange.
The services will be stuffed with features like firm institutional liquidity, full custodian solution, one public rulebook for all members, safe and secure hot/warm/cold multi-signature wallets and a central limit order book (CLOB) with streaming. Executions details will incorporate an uptime of 100%; and all orders time-stamped in microseconds, a matching latency of fewer than 350 microseconds, a high throughput greater than 100,000 messages per second.
As of now LMAX Digital only operates in a data center of London, but the company plans to build new offices in Tokyo and New York.
David Mercer, CEO of LMAX Exchange, said, “We are furthering the legitimization of the cryptocurrency market by offering institutions a platform on which to acquire, trade and hold cryptocurrencies securely with high quality, deep liquidity.”
He claimed that till now his exchanges have been able to assist the trade of $10 trillion and made a connection with institutional clients from more than 100 countries. According to Mercer, his company has acquired the experience required from its institutional FX market to form a crypto exchange for institutional clients. LMAX Digital is supposed to be technologically advanced, should possess improved fundamentals and the precise and transparent execution of the company.
He believes that the introduction of digital currencies in institutional trading will change the industry for forever. LMAX Digital is acknowledged as the boost crypto market needed to establish itself in the mainstream. He added that “Digital currencies are, without a doubt, coming of age. Exchanges will play a crucial role in bringing the major cryptocurrencies into wider circulation, helping them to become accepted into conventional funds which in turn will help to support a normalization of value.”
Ibinex founder, Simon Grunfeld said that a daily turnover of $5 trillion would be enough to minimize the high volatility factor in digital currencies. But, as the crypto market is nowhere near the numbers, the chances of LMAX Digital failing cannot be denied. At least, huge price swings like 2018’s first quarter would be tamed by the exchange.
Since 2017, institutional money has seen a dramatic rise in the crypto space which can be termed as the most important reason for the creation of LMAX Digital. If it even gets a hint of success, we would probably see more institutional crypto exchange in the near future.
