The race to redefine FX trading is on. According to the recent Coalition Greenwich report, multi-dealer platforms (MDPs) are poised to overtake single-dealer platforms (SDPs) in spot FX trading in 2025 – a stark reversal of recent years where SDPs dominated. 

Amid these changes, banks need to adapt so they can meet their clients wherever they are and deliver on best execution requirements. To get ahead of the competition, banks need to upgrade their technology to enable faster price discovery, bespoke price creation and improved risk management. At the same time, we’re seeing more sophisticated buy-side firms utilising API first architecture to directly embed banks’ services and functionalities into their own workflows, creating new opportunities for dealers, provided they have the right technology.  

The message is clear: future success hinges on mastering MDP, SDP and API trading ecosystems. The key lies in leveraging venue-neutral, multi-channel technology to build a robust distribution platform. From there, banks can focus on delivering a unique trading experience tailored to their clients – on any platform, in any environment. 

Mark Suter, executive chair, Digital Vega 

In 2025, we expect the see the FX options market automate further, with more regional and private banks implementing workflow automation technology solutions. As their clients want to trade electronically and trade sizes reduce, many banks are having to implement technology to manage a larger volume of price requests and more tickets to process. A key focus for Digital Vega in 2025 is to continue to roll out our white label electronic platform to client banks. This increases workflow efficiency and capacity, and also allows banks to price trades themselves or source prices from our multibank platform, which enables increased currency coverage. 

Next year will also see the full production launch of our FX options CLOB. We have spent a long time developing the platform and conducting client testing but held back from a full launch until we could rely on deep liquidity on day one. Now we have most of the main trading firms connected we expect to launch in early 2025. As the CLOB makes interdealer trading more efficient we think that the whole of the FX options market will benefit from increased liquidity and overall volumes will grow as a result. 

Stephan von Massenbach, chief revenue officer, DIGITEC 

The FX swaps market is migrating to electronic channels, and we expect the pace of change to continue through 2025. Clients want to trade FX swaps in multiple currencies, and tenors beyond overnight and tom-next, and banks will only be able to service clients efficiently by implementing scalable technology solutions, where workflows are largely automated – in data, pricing, distribution, and settlement. Also, the velocity of the underlying market has increased which means that banks using Excel to manage their FX swaps books are now turning to technology solutions to keep pace. SaaS technology deployed in the cloud has reduced the investment required to provide accurate and fast FX swaps pricing. 

Interdealer FX swaps trading, which is dominated by the broker market, has begun to migrate to electronic venues, like 360T SUN and LSEG Forwards Matching. We expect more volume to migrate to electronic channels in 2025. 

David Mercer, chief executive officer, LMAX Group 

The foreign exchange (FX) market remains a cornerstone of global trade, yet its pace of innovation lags other areas of capital markets. Despite representing the lifeblood of international economies, significant portions of the market remain untouched by the latest technology and innovation. This leaves ample opportunity for modernisation through blockchain technology as we see increasing fusion between TradFi and decentralised finance.  

Simplified and automated solutions could transform FX, enhancing global price discovery and market access. Looking ahead, there is enormous potential for decentralised models to reshape FX as we know it. Tokenisation would facilitate more dynamic and transparent trading, addressing inefficiencies and increasing participation from diverse players. As sovereign nations strive to maintain control over their currencies, FX innovations can bridge the gap between national interests and meet the demand for a seamless global marketplace. 

The post The TRADE predictions series 2025: Foreign exchange appeared first on The TRADE.

The transaction is expected to close in the next month, subject to customary closing conditions.

The partnership is set to include execution venues, precise market data and trade analytics, with Cürex’s bank and buy-side relationships complementing the existing institutional client base of LMAX Group’s FX business.

Cürex, a New York City‐based foreign exchange execution services and data analytics business, has a portfolio which includes: a firm pricing spot FX central limit order book supporting bank algo platforms; a pre-trade and post‐trade analytics platform which real‐time data analysis; and a peer-to-peer matching pool.

Following this transaction, the business will benefit from LMAX Group’s Asian reach, as well as its established operations and connectivity via matching engines in Singapore and Tokyo. 

David Mercer, chief executive of LMAX Group highlighted the similarities between the two businesses: “Cürex and LMAX Group share a common ethos of delivering transparent price discovery and efficient market structure through firm liquidity and no ‘last look’ execution. 

“We are constantly exploring ways to expand our product offering and diversify distribution for the institutional segment. We believe that through this acquisition, our combined client base will benefit from a more diversified array of FX solutions as we continue to invest in our technology, people and product development.”

LMAX Group is accelerate its growth across the US through this acquisition, as well as strengthening its technical capabilities and customer and liquidity relationships.

The move is part of LMAX Group’s international growth strategy as it aims to build a leading institutional FX exchange. 

James Singleton, chief executive of Cürex, said: “LMAX Group is the right business to take Cürex into the next stage of its evolution and start a new phase of growth. After more than a decade of building Cürex, I will be leaving the business, following completion of the acquisition. It has been a privilege to serve in this role and I have no doubt that the combined organisations can achieve great success together under the leadership of LMAX Group.”

Earlier this year, LMAX Digital, an institutional crypto currency exchange operated by LMAX Group, alongside digital asset custodian, Zodia Custody agreed to provide both trading infrastructure and custody services to European digital asset manager CoinShares.

The post LMAX Group to acquire Cürex’s FX business in institutional push appeared first on The TRADE.

Expected in Q3 2022, subject to regulatory approval, the launch will initially include centrally cleared USD settled Bitcoin and Ethereum futures.

Trading will occur 23 hours, five days a week, with plans for the full product roll out to be extended to 24/7 trading.

“As institutional adoption of crypto trading continues to increase, we will complete our offering by adding crypto futures to our portfolio through this partnership,” said David Mercer, chief executive of LMAX Group.

“The market in crypto futures is three times bigger than spot and by offering access to deep institutional liquidity, we are providing a significant market entry opportunity as crypto and blockchain finance evolves. This pioneering solution will close the gap, enabling round-the-clock trading of crypto futures, seven days/week, meeting the needs of a rapidly growing number of institutional participants.”

Last year, a 30% stake in LMAX Group was acquired by US private equity investor, JC Flowers. The $300 million minority investment valued the FX and crypto trading venue operator at $1 billion at the time.

The partnership with SIX will leverage the expertise of the two firms and immediate uptake is expected to be received from LMAX Group’s existing clients, as institutionalisation continues to occur in the digital asset ecosystem and demand for robust trading infrastructure increases.

LMAX Group said in a statement that as digital assets and traditional capital markets increasingly converge, it sees perpetual trading at the forefront of transitioning to complete, open market access, ensuring more efficient functioning of capital markets and increasing levels of global trade.

“This is a major milestone for SIX from several perspectives. We are making substantial progress according to our digital asset clearing strategy and are expanding our portfolio of cleared asset classes,” said Javier Hernani, head of securities services at SIX.

“At the same time, we have the opportunity to bring our Swiss and Spanish infrastructure strengths together by having a diverse project team with experts from both sides. We are creating a strong SIX Clearing services powerhouse that will benefit all our customers.”

Earlier this month, SIX reported “substantial” profit losses which it attributed to fluctuations in Worldline share prices that saw its profits rise in 2020 and fall in 2021. The exchange said that without the effects of Worldline, it would have expected to see an increase in group net profit of 37.3% on the previous year.

The post LMAX Group partners with SIX to launch 24/7 traded crypto-asset futures appeared first on The TRADE.

FX and cryptocurrency trading venue operator LMAX Group has appointed the former Euronext FX global sales head to oversee its institutional sales for the Americas.

Paul Ainsworth joins LMAX Group in a newly created role from FX technology firm Spotex where he has worked since January. He will be responsible for driving the institutional business at LMAX Group in the region, reporting directly to Patrick Bartle, managing director for the Americas.

Prior to Spotex, Ainsworth was previously at Euronext FX where he was global head of sales for five years. Earlier in his career, he also worked at UBS as an executive director in eFX sales for nearly seven years and as a director in eFX sales at Barclays for five years.

“Paul is a capital markets veteran and brings with him an extensive track record of success throughout his career. Paul’s appointment will propel us on towards our next phase of growth with the vision to become the pre-eminent global exchange for FX and crypto currency trading,” commented Bartle.

Several crypto trading venues have appointed dedicated staff to institutional sales roles in the last year as major institutions in the asset class continue to enter the space.

Most recent was UK-based digital securities exchange, Archax, which appointed former CMC Markets sales consultant, Malcolm Ford, to head up its institutional sales.

Institutional interest in digital assets is undoubtedly on the rise. Last month alone, Standard Chartered, State Street, Nasdaq, TP ICAP and Deutsche Börse were among those to launch crypto focused initiatives.  

The post LMAX Group hires former Euronext FX global sales head appeared first on The TRADE.

The post TRADE Calls: LMAX Group – Weekend FX Trading appeared first on The TRADE.