“Business as Usual” at LMAX Exchange Following CHF Catastrophe

Day two of the fallout surrounding the rampant volatility of the Swiss franc (CHF) has left brokers like FXCM and IG Group to incur substantial hits to their business – however, LMAX Exchange appears to be an oasis of calm, ensuring clients that it is “business as usual".

Indeed, LMAX Exchange joins other brokers and providers such as GAIN Capital, Plus500 and ADS Securities who have emerged out of this CHF bedlam unscathed. On the contrary, the only alterations LMAX has made were temporarily increased margins of 10% on EUR/CHF and USD/CHF and 5% on other CHF crosses respectively.

According to CEO David Mercer in a recent statement on the aftermath, "Thursday was a difficult day for the FX marketplace and our clients following the unprecedented Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in the Swiss franc. Our strict risk controls and robust technology ensured that LMAX Exchange suffered no significant financial repercussions.”

“We expect business as usual for our clients on Friday with no change to our international operation in London, Hong Kong and Tokyo. The benefits of exchange style Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and limit order book transparency were clear to see after the general market dislocation created by the SNB announcement."