Equinix, Inc., the global interconnection and data center company, today announced that LMAX Exchange, the first Financial Conduct Authority (FCA) regulated MTF for foreign exchange spot transaction, has launched a matching engine in Equinix’s International Business Exchange™ (IBX®) data center in Tokyo (TY3). Given the success of its matching engine in Equinix’s London data center (LD4/5), LMAX Exchange is adding a matching engine in Japan, a major milestone in global expansion for the company. It will give brokers, asset managers, funds and banks in Asia Pacific access to LMAX Exchange at execution speed of less than 4ms.
Tokyo ranks as a leading foreign exchange hub globally, recording a daily average of $372.7 billion in foreign exchange trading, including spot transactions, futures, currency swaps and options, according to data from the Tokyo Foreign Exchange Market Committee . As the world's third-largest currency-trading center, accounting for over 40% of the global retail FX volumes, foreign exchange transactions in the Tokyo market are high.
LMAX Exchange delivers exchange style, visible liquidity and committed pricing, with low latency execution and complete trading transparency to both buy and sell-side institutions. With a remarkable three-year growth of 307.8 percent in annual sales, Japan represents a key market for the LMAX Exchange, as it continues to focus on the successful execution of its global growth strategy.
By launching a matching engine in TY3, LMAX Exchange joins the growing community of leading financial institutions in Equinix data centers around the globe. The expansion by LMAX Exchange further enhances Equinix’s global electronic trading ecosystem, providing the interconnection options that companies need to meet business demands.
Strategically located within Tokyo’s city center, TY3 offers LMAX Exchange the advantage of close proximity to major financial exchanges in Japan, as well as liquidity providers and institutional investors who are increasingly adopting cross-asset trading execution strategies, including FX. Close proximity to the Japan Exchange and Tokyo Commodity Exchange combined with access to the broadest choice of networks in the region, enables LMAX Exchange to deliver consistent low latency (under four milliseconds) to its customers in Asia Pacific.
Given the success of its matching engine in Equinix London data center (LD4/5), LMAX Exchange decided to expand its footprint with Equinix in Japan to meet the growth of its customer base in Asia-Pacific and ensure its customers benefit from the same low-latency trading environment.
David Wilkinson, senior director, financial services and enterprise, Equinix Asia-Pacific:
“The deployment of LMAX Exchange in Japan signifies the exuberant growth in the region, as financial services providers and FX trading platforms expand into Tokyo. It also enhances the TY3 electronic trading hub, demonstrating the strength of Equinix’s global financial ecosystem.”
David Mercer, CEO of LMAX Exchange:
“LMAX Exchange is leading the industry towards transparency, as we’ve witnessed a real shift in FX trading towards transparent price discovery and a level playing field over the past few years. With clients in over 80 countries, our main objective is to deliver consistently low latency and exchange quality execution around the globe. Now, with the deployment of the Tokyo matching engine in TY3, we are pleased to announce that LMAX Exchange can now offer the same low latency execution in under 4ms, that all our clients enjoy in LD4, to our clients in Asia-Pacific.”
Andrew Phillips, Director of Technical Operations at LMAX Exchange:
“With the deployment in TY3, we gain close proximity to major financial institutions in Japan. Proximity combined with access to the broadest choice of networks means our Tokyo matching engine can deliver sustained processing capacity of 40,000 orders per second, giving us a significant competitive advantage in the region.”
About LMAX Exchange
UK’s fastest growing technology firm (2014 Sunday Times, Tech Track 100), LMAX Exchange (lmax.com) is the first MTF for FX, authorised and regulated by the FCA. Servicing retail brokers, funds, corporates, asset managers and banks, LMAX Exchange delivers a unique vision for global FX trading - a transparent, neutral, level playing field for all market participants, regardless of status, size or activity levels.
The LMAX Exchange OPEN order book is driven by streaming, non ‘last look’ limit orders supplied by General Member liquidity providers. LMAX Exchange offers a range of key products, including spot FX, precious metals, commodities and equity indices, with complete pre and post-trade transparency and order execution where no ‘last look’ is standard. Orders are executed in strict price/time priority at an average speed of less than 4ms.
LMAX Limited operates a multilateral trading facility (MTF). Authorised and regulated by the Financial Conduct Authority, FCA Registered no. 509778.
Equinix, Inc. (equinix.com), connects more than 4,500 companies directly to their customers and partners inside the world’s most networked data centers. Today, businesses leverage the Equinix interconnection platform in 32 strategic markets across the Americas, EMEA and Asia-Pacific.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
LMAX Exchange Media Contact: P: +44(0)20 3192 2524 - E: press[.]LMAX.com.