LMAX is seeing most of its own growth in Russia and the Far East
According to LMAX Exchange’s CEO David Mercer global forex volumes are set to double by 2020 because of increasing growth in emerging markets FX. He outlined the important role of the Renminbi and the Russian Ruble which are both set to be free floated eventually. According to the press release issued by LMAX the multilateral trading facility will expand further into swaps and non-deliverable forwards.
Mercer adds that daily turnover has reached $5.3 trillion in 2013 which marks a 35% increase on 2010’s volumes. According to him this is only the beginning as Asian emerging markets and Russia are poised to grow further. He notes that 50% of the company’s new clients are from the Asia-Pacific and Eastern Europe regions. While the majority of flows are going to major currency pairs, there is a big scope for growth in local currency dealings.
That will only intensify once we see further liberalization of the currency markets in set countries, namely China and Russia. While the spot market is still leading, there is increased demand for NDFs, swaps and futures.
LMAX doesn’t report volumes publicly, but according to the press release they have reached an average of $10 billion daily (or more than $200 billion per month), while the launch of their LMAX Interbank facility is aiming at bridging the gap with industry leaders such as FXall, EBS and ICAP.
For the full press release visit LMAX’s website.