AAX Goes Live in Hong Kong Despite SFC’s Warning on Crypto Futures

Hong Kong-based startup Atom Group has officially launched its much-anticipated crypto trading platform based on the matching engine technology of the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (LSE).

Dubbed Atom Asset Exchange (AAX), it gained hype due to its promise of trade Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term with extremely low delays. According to the exchange, it can handle a large volume of orders with an average latency of under 500 microseconds, compared to the lowest latency of 5 milliseconds offered by Binance to its futures trading clients.

The technology advancement is possible as it is the first crypto exchange using LSE’s Millennium Exchange, along with stock exchanges in Singapore and Hong Kong, per the newly-launched exchange.

“We've been looking for a good solution that will be suitable for a long-term cryptocurrency exchange that is adopted and welcomed by the institutional or mainstream finance industry...LSEG tech is one of the most recognized,” Thor Chan, Atom’s CEO, told Bloomberg.

Another player in a saturated market

AAX is planning to list over 50 crypto-to-crypto trading pairs in its spot market, along with futures contracts for major digital assets. In addition, to attract traders from the limited access market of China, it is also offering an over-the-counter (OTC) desk facilitating trading with US dollar and Chinese yuan.

The crypto exchange initiated operations only a day after the Hong Kong financial watchdog brought in a new framework to regulate the nascent yet demanding industry. However, according to the South China Morning Post, the exchange will seek a license, given the program is currently on an “opt-in” basis.

The group, however, is approaching for licenses in other Asian jurisdictions to set up strong banking ties for its client base.

Meanwhile, the Hong Kong watchdog also issued a warning against the risky crypto futures trading and clarified that it has no intention to allow such services in its jurisdiction.