London’s LMAX Exchange Group Targets Institutional Traders With new Cryptocurrency Platform

JP Buntinx | May 21, 2018 | 10:00 am

London’s LMAX Exchange Group Targets Institutional Traders With new Cryptocurrency Platform

JP Buntinx | May 21, 2018 | 10:00 am

Cryptocurrency exposure is in high demand these days. Especially institutional investors are willing to take a gamble when it comes to Bitcoin and altcoins. Finding service providers granting access to these markets is still an ongoing struggle. LMAX Exchange Group is setting up the first physical cryptocurrency exchange for institutional clients.

LMAX Exchange Group Takes a Big Leap

Exposing institutional investors to cryptocurrency volatility is always a gamble. The actual demand for this degree of exposure is not the same as the general interest in such features. Both CME and CBoE found that out first hand over the past few months. After a very slow start to Bitcoin futures trading, it seems the volume is picking up a bit lately.

LMAX Exchange Group is attempting to offer a different approach. They will focus on the liquid established cryptocurrencies. This list includes Bitcoin, Ethereum, XRP, Litecoin, and Bitcoin Cash. Trading of these currencies will be available on a 24/7 basis through the LMAX Digital platform. This new service aims to function as a credible and efficient platform where cryptocurrencies can be traded among like-minded investors. LMAX Exchange Group CEO David Mercer explains:

“We are furthering the legitimisation of the cryptocurrency market by offering institutions a platform on which to acquire, trade and hold cryptocurrencies securely with high quality, deep liquidity.”

Are Institutional Investors a Worthwhile Target?

On paper, bringing cryptocurrencies to institutional investors can have major consequences. If these investors take some risks, the value of all supported cryptocurrencies can skyrocket fairly soon. Despite that appeal, it seems institutional traders have made very little impact on the industry to date.

LMAX Exchange Group is confident they can make a big impact. Their LMAX Digital platform will focus on offering a full custodian solution and a high throughput. Additionally, traders are expected to complete within microseconds. The company has a track record of being one of the biggest forex liquidity providers in the world. Whether or not that same label can be achieved in the cryptocurrency world, remains to be seen.

It is interesting to note how LMAX Exchange Group envisions a global rollout. The LMAX Digital platform will be set up in the company’s London-based data center. Later on, the infrastructure will make its way to New York and Tokyo as well. Very ambitious plans, as the impact of institutional traders on cryptocurrency has yet to be determined at this stage.


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