LMAX Group has cemented its position in the South Asian markets by receiving the Recognised Market Operator Licence from the Monetary Authority of Singapore (MAS). The license was granted to the local subsidiary, LMAX Exchange Singapore.
Clearing the Way to Offer FX NDFs
Announced today (Wednesday), the LMAX Group can offer non-deliverable forwards (NDFs) trading in Singapore (SG1) and London with the new license from the Singapore regulator.
“We look forward to a continued, symbiotic relationship with MAS as we progress our expansion plans and build out our cross-asset product offering in the region for the benefit of local customers and the broader, vibrant, Asia Pacific market,” said David Mercer, the CEO at LMAX Group.
An NDF is a currency contract that allows two parties to exchange cash flows based on the difference between the agreed-upon exchange rate and the actual spot rate at the time of settlement. Unlike a regular forward contract, an NDF does not involve the physical delivery of the currencies but only the net amount in a convertible currency.
The announcement of the LMAX Group stressed that its NDF products will allow clients to hedge their FX exposure against non-convertible currencies on a Central Limit Order Book.
A Strategic Move
The license came after the LMAX Group expanded its technology infrastructure in the region by launching a matching engine at SG1 in 2022, the company’s fourth matching hub. However, it has maintained a presence in Singapore with a regional office since 2015.
Highlighting the importance of Singapore as the hub for global FX trading, Matt DellaRocca, the Head of Liquidity and Analytics (APAC) at LMAX Exchange, said: “We continue to expand our product offering to meet growing local demand for transparent price discovery and access to deep institutional liquidity and look forward to strengthening our institutional client relationships across Asia.”
Meanwhile, LMAX is making strides to expand its industry presence in other areas. As Finance Magnates reported, it completed the acquisition of New York-based Cürex last month, extending its FX liquidity for clients.
