The launch of NDFs – set for “early next year” in Q1 2024, according to an LMAX spokesperson – will allow LMAX Exchange clients to hedge their FX exposure against non-convertible currencies on a Central Limit Order Book (CLOB), leading to more transparent price discovery, deeper liquidity and more efficient market structure.
LMAX Group subsidiary, LMAX Exchange Singapore, has received a Recognised Market Operator (RMO) licence from the Monetary Authority of Singapore (MAS), allowing it to offer Non-Deliverable Forward (NDF) trading in Singapore (SG1) and London (LD4).
FX trading venues using central limit order book (CLOB) systems to match buyers and sellers saw double-digit percentage increases in activity in 2022, purportedly driven by the need for firm pricing in volatile markets.
The new offering is designed to meet growing demand from institutional investors for low-latency trading infrastructure and the trading of FX NDFs across Asia Pacific, the firm said.
LMAX Group CEO David Mercer said: “The Monetary Authority of Singapore is among the most progressive and innovative regulators globally. We look forward to a continued, symbiotic relationship with MAS as we progress our expansion plans and build out our cross-asset product offering in the region for the benefit of local customers and the broader, vibrant, Asia Pacific market.”
LMAX Exchange head of liquidity and analytics, APAC, Matt DellaRocca, said: “As Singapore becomes an increasingly important hub for global FX trading, we are delighted to have the support and recognition from MAS. We continue to expand our product offering to meet growing local demand for transparent price discovery and access to deep institutional liquidity and look forward to strengthening our institutional client relationships across Asia.”
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