LMAX has announced the acquisition of institutional swaps matching service FX HedgePool as part of its efforts to build a global cross-asset marketplace.
Already known as a leading independent operator of institutional execution venues for FX and digital assets trading, LMAX Group will now leverage FX HedgePool’s expertise in the FX swaps and forwards market, combined with the distribution scale of LMAX Group and its established reputation in spot FX and non-FX asset classes.
The firm has said FX HedgePool’s community of both buy- and sell-side relationships complements the existing institutional client base of LMAX Group’s FX business, LMAX Exchange, which counts top-tier global banks and non-banks as its clients.
FX swaps are the most traded instrument
FX swaps account for over half (51%) of total daily FX turnover and remain the most traded instrument with turnover of $3.8 trillion per day (BIS, 2022). The addition of swaps to LMAX Group’s existing spot FX and NDF global offering enhances its position as the leading independent execution venue for FX trading.
David Mercer, CEO, LMAX Group, said: “LMAX Group is focused on providing innovative solutions to the market, constantly exploring ways to enhance and expand our offering for institutions. We believe that with the acquisition of FX HedgePool, our combined client base will benefit from access to a wider suite of products and increased global distribution. Following this acquisition and that of Cürex last year, we now have a compelling proposition for asset managers and other buy-side participants in addition to serving our core bank, broker and proprietary trading firm segments.”
Jay Moore, CEO and Founder of FX HedgePool added: “This significant milestone for FX HedgePool and our community marks the start of a period of considerable innovation. The established yet agile, LMAX Group, complements FX HedgePool’s proven ability to introduce groundbreaking solutions for the modern trading desk. Both firms are aligned in delivering innovative products that set new standards for transparency, fairness and efficiency, and we look forward to an exciting future.”
LMAX launched NDF trading in Singapore
LMAX recently announced the launch of Non-Deliverable Forward (NDF) trading in both Singapore and London following the acquisition of a Recognised Market Operator (RMO) license from the Monetary Authority of Singapore (MAS).
The RMO license from MAS not only legitimizes the company’s operations in the region but also aligns with Singapore’s growing stature as a global FX trading hub. The introduction of NDF trading, backed by a transparent and efficient CLOB system, is poised to enhance LMAX Exchange Singapore’s market position and offer significant benefits to its clients, especially in terms of foreign exchange risk management.
The move came on the heels of LMAX’s infrastructure expansion in the Asia Pacific region and the launch of a new matching engine in the Equinix IBX Data Centre in Singapore (SG1). The matching engine offers trading on a CLOB, featuring real-time, firm limit order liquidity from leading global banks and non-bank entities. This setup ensures transparency and competitiveness in pricing.
