Experiencing growth in its broker solutions, UK regulated multilateral trading facility (MTF), LMAX Exchange, is expanding its offering to include Prime of Prime (PoP) services. Becoming a destination of FX and CFD liquidity for brokers, firms with existing prime brokerage accounts have been able to connect to LMAX for their trading needs or via direct margin accounts. The PoP solution now provides a third offering for brokers to access liquidity at LMAX.
Growing in popularity since the 2008/09 global financial crisis triggered a reduction in the ability for smaller firms to receive credit lines for their trading needs at prime brokers, PoPs have been able to carve out a niche to less capital rich companies. Using their own relationship with a larger prime broker and credit lines to major ECNs and exchanges, Prime of Primes then resell those services to their clients.
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Called LMAX Prime, the new offering uses a similar model to other PoPs, allowing LMAX customers to both access FX liquidity on their trading platform, as well as have the ability to receive credit lines to trade at other ECNs or banks.
Separately, LMAX Exchange today announced the opening of a new Hong Kong operational office. According to a company representative, the office will be tasked with assisting in LMAX’s 24 hour technical and operational support, covering Asian market hours. Overall, the LMAX Prime product expansion and Hong Kong expansion point to a continuation of the firm’s strong growth experienced in 2013 when revenues rose 285%.