AAX Goes Live in Hong Kong Despite SFC’s Warning on Crypto Futures

The exchange is planning to introduce Bitcoin and Ether futures contracts.

Hong Kong-based startup Atom Group has officially launched its much-anticipated crypto trading platform based on the matching engine technology of the London Stock Exchange (LSE).

Dubbed Atom Asset Exchange (AAX), it gained hype due to its promise of trade execution with extremely low delays. According to the exchange, it can handle a large volume of orders with an average latency of under 500 microseconds, compared to the lowest latency of 5 milliseconds offered by Binance to its futures trading clients.

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The technology advancement is possible as it is the first crypto exchange using LSE’s Millennium Exchange, along with stock exchanges in Singapore and Hong Kong, per the newly-launched exchange.

“We’ve been looking for a good solution that will be suitable for a long-term cryptocurrency exchange that is adopted and welcomed by the institutional or mainstream finance industry…LSEG tech is one of the most recognized,” Thor Chan, Atom’s CEO, told Bloomberg.

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Another player in a saturated market

AAX is planning to list over 50 crypto-to-crypto trading pairs in its spot market, along with futures contracts for major digital assets. In addition, to attract traders from the limited access market of China, it is also offering an over-the-counter (OTC) desk facilitating trading with US dollar and Chinese yuan.

The crypto exchange initiated operations only a day after the Hong Kong financial watchdog brought in a new framework to regulate the nascent yet demanding industry. However, according to the South China Morning Post, the exchange will seek a license, given the program is currently on an “opt-in” basis.

The group, however, is approaching for licenses in other Asian jurisdictions to set up strong banking ties for its client base.

Meanwhile, the Hong Kong watchdog also issued a warning against the risky crypto futures trading and clarified that it has no intention to allow such services in its jurisdiction.

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