LMAX Exchange

LMAX Exchange
Privately held company
Industry Electronic forex Trading
Founded 2010 (2010)
Headquarters London, United Kingdom
Products Forex, Bullion, Equity Indices, Commodities, Ven
Website www.lmax.com

LMAX Exchange is a UK-based multilateral trading facility (MTF) and acts as an foreign exchange aggregator for forex trading. LMAX Exchange provides low latency, order-driven execution venue for electronic trading on the foreign exchange market.[1]

History

The company was launched in 2010 and by 2016 has grown to be the major MTF for forex trading.

In 2013 it decided to expand its services to the US, by setting up second matching engine in New York.[2] This was completed and went live in 2016.[3]

Business model

LMAX uses the concept is an exchange style trading model for trading that was traditional executed over-the-counter; just as on an exchange - orders are matched in price/time priority with no 'last look' or ability to reject orders by liquidity providers.[4]

In accordance with MTF principles, trading on LMAX Exchange is pre & post trade transparent. MTF operating principles and membership rules are defined in the publicly available Rulebook.[5]

LMAX Exchange operates an open order book, driven by market/limit orders against streaming, no 'last look' limit orders supplied by liquidity providers.[6] [7]

LMAX Exchange offers multiple connectivity options: FIX 4.4, Java and .NET APIs, MT4/5 bridges. Trading instruments on LMAX Exchange include over 60 Spot FX pairs, Spot Gold, Spot Silver, Major Indices.

Technology

LMAX Exchange technology is built for low latency execution and high throughput. The technology utilises a distributed event-driven architecture based on asynchronous multicast messaging. LMAX Exchange is notable for its invention, use and popularisation of the LMAX Disruptor,[8] a software pattern and software component for high-performance inter-thread communication that avoids the need for message queues or resource locking.[9] LMAX Exchange has open sourced its Java implementation of the Disruptor component and a number of other libraries.[10] In addition LMAX Exchange was an early adopter and is a leading proponent of the Continuous Delivery software development process.

Regulations

LMAX Exchange is authorised and regulated by the Financial Conduct Authority (FCA),[11] to operate a multilateral trading facility (MTF), as defined under the European Markets in Financial Instruments Directive ("MiFID").

References

  1. ↑ "LMAX Exchange Getting Up To 50% Improvement in Latency From Azul's Zing JVM". Infoq.com. 2013-05-07. Retrieved 2013-11-14.
  2. ↑ "LMAX Exchange Announces Plans for Second Matching Engine in New York". forexbrokerz. July 3, 2013.
  3. ↑ "LMAX Exchange expands in New York". Automated Trader. September 26, 2016.
  4. ↑ "e-Forex Magazine | Special Report | LMAX Exchange. Exchange style trading for spot FX". E-forex.net. Retrieved 2013-11-14.
  5. ↑ "LMAX Rulebook" (PDF). LMAX Exchange. Retrieved 2013-05-29.
  6. ↑ "FX: an exchange-traded future? /Euromoney magazine". Euromoney.com. Retrieved 2013-11-14.
  7. ↑ "Vanguard Fed Up With `Last Look' Practice Pervading Currencies /Bloomberg". bloomberg.com. Retrieved 2016-04-20.
  8. ↑ "LMAX Disruptor | Open Source | LMAX Exchange". Lmax.com. Retrieved 2013-11-14.
  9. ↑ "Beginners Guide to Hardcore Concurrency". Bad Concurrency. Retrieved 2013-06-04.
  10. ↑ "LMAX Disruptor". Github. Retrieved 2013-06-07.
  11. ↑ "The Financial Services Register". Fsa.gov.uk. Retrieved 2013-11-14.
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