LMAX Group has launched FX Non-Deliverable Forwards (NDFs), available to trade in two matching centres, Singapore (SG1) and London (LD4).
The FX NDFs are traded on a central limit order book (CLOB), and will initially target Asia Pacific, where there is growing demand for FX NDF trading and access to deeper institutional liquidity as well as enhanced FX market structure.
David Mercer, CEO, LMAX Group, said: “As demand for institutional liquidity for Asian currencies continues to grow, adding NDFs to our global FX offering is a logical next step following the launch of our matching engine in SG1 in 2022. We recognise the significant potential that remains untapped in the Asian FX market and will continue to broaden our product suite, expand our distribution capabilities globally, and build the leading institutional FX marketplace.”
Matt DellaRocca, head of liquidity and analytics, APAC, LMAX Exchange, added: “We are delighted to go live with this offering, which will provide local FX market participants with access to an expanded pool of NDF liquidity through a regulated exchange venue and a CLOB model that delivers efficient market structure and transparent, precise, consistent execution.”
LMAX Group said Singapore is “paramount” to its growth. Asia accounts for three of the top four NDF currencies by volume, globally. Overall, trading in NDFs almost doubled globally between 2016 and 2022 from $134 billion to $266 billion, owing to greater electronification of NDF markets and increasing numbers of market participants.
FX NDF trading on LMAX Exchange via Singapore and London will initially offer top Asian USD crosses including Indian Rupee (INR), South Korean Won (KRW), New Taiwan Dollar (TWD), Chinese Yuan (CNY), Indonesian Rupiah (IDR), Philippine Peso (PHP) and Malaysian Ringgit (MYR) with LATAM crosses to follow.
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