LMAX Quietly Introduces Physical Delivery of FX on Majors

British FX and CFD exchange provider, LMAX, has today added a new service to its offering, in the form of physical delivery of major currencies.

As the only multilateral trading facility for FX, LMAX has made constant adjustments to its offering over recent months, including a shift in focus during the summer of 2013 toward greater concentration on Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, as well as having entered the increasingly crowded and competitive interbank market.

Although this decision could be viewed as unusual among companies whose business model is to provide liquidity to the brokerage business, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates discussed LMAX's quiet introduction of the service in order to gain perspective on its importance among the company's product offering with the firm's COO, Scott Moffat.

Mr. Moffat explained to Forex Magnates today that, "LMAX Exchange is constantly trying to provide greater market access to our wide range of customers in over seventy countries, as demonstrated by the recent launch of CNH, RUB and XVN.

The addition of an FX delivery service for existing customers is merely to extend this market access to our customers who occasionally have a requirement for physical FX delivery and may not normally be able to access the best rates available. Our technology, processes and range of market access mean that this is a relatively simple service for us to assist customers, but at this stage we have no intention of entering the mass market deliverable space. We feel it’s important to continually seek to provide value added services to customers.”

With LMAX having initially kept its cards very close to its chest with regard to the rationale behind adding this service, it may be worthy of note that Australian deliverable FX company OzForex issued an Initial Public Offering in September last year, listing at a somewhat stratospheric value of AUD $439 million.