Betfair's LMAX receives FSA nod to launch a CFDs exchange

LMAX Limited today announced that it has received Financial Services Authority (FSA) authorisation and plans to launch and operate a multilateral trading facility (MTF) to trade contracts for difference.

Immediately prior to FSA authorisation Goldman Sachs, pursuant to an agreement entered into in 2008, acquired a 12.5% stake in LMAX Limited's parent company London Multi-Asset Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Holdings) Limited. LMAX was established by Betfair, the world's leading sports betting exchange, in 2007, to enter the market for online retail financial trading. Betfair is the majority shareholder in the company.

It seems that LMAX is going to be the first CFDs exchange that I'm aware of, with the exception of the American NADEX, which offers products somewhat similar to CFDs.

MTF is a MiFiD definition for an exchange, of what we often call an ECN marketplace. It seems that many now view CFDs as a growing market segment and are beginning to offer these products. Boston Technologies recently announced that it will start offering CFD 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 making access to this instrument even easier.

A word about Betfair: Betfair is the world’s largest international online sports betting provider and pioneered the first successful Betting Exchange in 2000. The Betting Exchange, where customers come together in order to bet at odds sought by themselves or offered by other customers, has eliminated the need for a traditional bookmaker. Having been in touch with the people from Balderton Capital, one of Betfair's investors and the firm that was behind Bebo as well, a couple of years ago news of Betfair's imminent IPO which puts its value £1.5bn didn't come as a surprise to me. I wish Roberto, Balderton Capital and Betfair a successful IPO and best of luck with the new LMAX venture as well.