Exclusive: LMAX Exchange Foresees Multi-Million Profit after 2015 Loss

The company’s performance last year has been affected by tough market conditions post-SNB.

LMAX Exchange has officially posted its results for 2015 via a UK Companies House filing earlier today. The company posted a £1.3 million loss for 2016 with revenues declining 12 per cent to £23 million.

Commenting exclusively to Finance Magnates, a company spokesperson confirmed that the results of the firm have been affected by reduced credit availability, low volatility, gapping markets and low interest rates following the removal of the Swiss franc peg in January 2015.

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“In 2015, LMAX Exchange achieved its main objectives with continued growth in institutional client acquisition and margined client funds, further global expansion, product diversification and futureproofing its exchange technology,” the spokesperson stated.

Elaborating on the performance of the firm in 2016, the LMAX Exchange official stated: “The first nine months of 2016 have been productive for LMAX Exchange and it is expected to post a multi-million-pound profit for the financial year ending December 2016.”

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Looking at key metrics, LMAX Exchange posted total volumes in line with 2014 when the firm managed to facilitate £1.9 trillion via its multi-lateral trading facility. Client funds grew by 27 per cent from $113 million to $144 million. The share of trading volume from clients that use their own clearing solution outside of LMAX Exchange has increased to a third of total volumes, which is higher when compared to 13 per cent in 2014.

The firm has increased its administrative expenses to £17 million from £15 million in 2014, which resulted in a substantial expansion of the company’s offering.

“It was a year of investment and consolidation for the company with expansion in the Asia Pacific region, opening an office in Hong Kong and developing a Tokyo Exchange. LMAX Exchange continued to invest in its people and its core technology to enable further international growth, culminating in the launch this month of a New York matching engine,” the spokesperson elaborated.

The company maintained the same number of total employees at 112, while focusing its efforts in product development.

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