UK-based technology firm, LMAX Exchange, today announced the launch of a matching engine in the Equinix IBX Data Centre in Tokyo (TY3). This will give brokers, asset managers, funds and banks in Asia Pacific access to LMAX Exchange at execution speed of less than 4ms.
Adding a matching engine in Japan, the market accounting for over 40% of the global retail FX volumes, is a major milestone in global expansion for the London-based LMAX Exchange. The first FCA regulated MTF for FX trading, LMAX Exchange operates its original matching engine from Equinix London data centre (LD4/5), delivering exchange style, non ’last look’, low latency execution.
LMAX Exchange CEO, David Mercer, commented: “Over the past couple of years, we have witnessed a real shift in FX trading towards transparent price discovery and a level playing field. LMAX Exchange is leading this industry change towards transparency and with clients in over 80 countries, our main objective is to deliver consistently low latency and exchange quality execution around the globe. With the launch of the Tokyo matching engine, we can now offer the same low latency execution in under 4ms, that all our clients enjoy in LD4, to our clients in Asia-Pacific.
Andrew Phillips, Director of Technical Operations at LMAX Exchange, added: “Through TY3 we gain close proximity to major financial institutions in Japan; this combined with access to the broadest choice of networks, means our Tokyo matching engine can deliver sustained processing capacity of 40,000 orders per second, giving us a significant competitive advantage in the region.”
Liquidity providers and major regional brokers have welcomed the announcement. Alex Gerko, Head of Trading at GSA Capital, commented: “LMAX Exchange has a truly unique business model, enabling complete transparency and level playing field to both the buy and sell-side. We are excited to continue working with LMAX Exchange and pricing into the new Tokyo venue, bringing the benefits of limit order-based, low latency execution to clients in Asia-Pacific.”
David Wilkinson, Senior Director, Financial Services and Enterprises, Equinix Asia Pacific, commented: “The deployment of LMAX Exchange in Japan signifies the exuberant growth in the region, as more and more financial services providers and FX trading platforms are expanding into Tokyo. It also further strengthens TY3 as our FX hub in the region, demonstrating our global financial ecosystem inside Equinix.”