The London-based trading venue has standardised on the highly reliable Informatica low latency messaging software to execute trades at predictable, sub-millisecond latency at high throughput. This gives retail traders the advantages of exchange trading, so they benefit from the pricing transparency, market depth, neutrality and control that has until recently only been available to institutions in the wholesale market.

LMAX is client-neutral and does not take positions against its customers. LMAX traders benefit from the ability to place orders directly into the MTF, with the benefit of faster execution, no dealer acceptance and no re-quotes. The firm launched six months ago and is currently offering customers the opportunity to trade FX contracts and CFDs in equity indices, commodities, bonds and interest rates with more asset classes to follow in due course. Every aspect of this innovative service is about giving institutional trading advantages to retail clients, effectively taking out the middle man and the broker chain. A retail client can now trade direct into the market and be a market maker, not just a trader.

One of the main advantages of using Informatica Ultra Messaging is the speed of performance. LMAX customers need to be able to react incredibly quickly to market movements and speed of execution is therefore a key requirement for retail users on a trading venue. The LMAX trading system consistently performs at below one millisecond.

Informatica Ultra Messaging was instrumental in the LMAX MTF winning the award for the 'Best Trading System' at the 2011 Financial Sector Technology (FST) Awards. According to FST judges, the LMAX MTF is a next-generation trading system that, with ultra-low-latency messaging at the center of its platform, will fast capture market share and accelerate profits for the retail trading industry.

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Supporting Quotes

"LMAX's use of Informatica Ultra Messaging has meant that our time to market was significantly reduced and has been a key ingredient in LMAX winning the 2011 FST Award," says Martin Thompson, chief technology officer, LMAX. "For the first time, retail customers can set their own market price on an exchange covering multiple asset classes. Using Informatica Ultra Messaging, our customers can trade rolling spot FX contracts and CFDs in a low latency, reliable environment. As dynamic market conditions continue to challenge legacy systems, LMAX has positioned itself to win market share with its next-generation system, built with Informatica Ultra Messaging."

"We are immensely proud that LMAX has chosen Informatica's market-leading, low latency messaging software that is also the most efficient, configurable and widely deployed messaging solution," said Mark Mahowald, general manager, Messaging Business Unit, Informatica. "Every millisecond counts for retail and institutional buyers and sellers and by using Informatica Ultra Messaging, LMAX is benefiting from reduced infrastructure costs, increased throughput and higher system availability."

Commenting on the 2011 FST Award, FST judging panel member Sophie Baker, editor, FST says, "Dynamic market conditions will continue to put a strain on legacy systems. LMAX spotted this opportunity and in selecting Informatica, LMAX has been able to address a real gap in the market with a unique and compelling trading platform. We also felt that LMAX had given traders access to wholesale liquidity and wholesale prices. The LMAX MTF is a next-generation trading system that puts ultra-low-latency messaging at the center of the platform."