Institutional forex and digital asset broker LMAX Group has announced the launch of FX Non-Deliverable Forwards (NDF), available for trading in two respective hubs, Singapore (SG1) and London (LD4). The launch follows LMAX Exchange, the Group’s global institutional FX exchange, receiving a Recognized Market Operator (RMO) license from the Monetary Authority of Singapore (MAS) late last year.
FX NDFs trade on a centralized limit order book (CLOB), providing transparent price discovery and accurate, consistent execution to all market participants, including banks, non-banks, proprietary trading firms, institutional brokers, asset managers and institutions from market side. Initially targeting the Asia-Pacific, the launch supports growing regional demand for FX NDF trading and access to deeper institutional liquidity as well as an improved FX market structure.
Asia Pacific is a strategically important region for the LMAX Group and the business sees Singapore as of prime importance for its growth as the country emerges as one of the world’s leading FX hubs. Asian currencies have the largest NDF markets, with Asia accounting for three of the top four NDF currencies by volume, globally. Overall, trading in NDFs almost doubled globally between 2016 and 2022 from $134 billion to $266 billion, driven by greater digitization of NDF markets and the growing number of market participants.
FX NDF trading on LMAX Exchange via Singapore and London will initially offer leading Asian USD crosses including Indian Rupee (INR), South Korean Won (KRW), New Taiwan Dollar (TWD), Chinese Yuan (CNY), Rupiah Indonesia (IDR). Philippine Peso (PHP) and Malaysian Ringgit (MYR) with LATAM crosses to follow.
David Mercer, CEO of LMAX Group, said:
“As the demand for institutional liquidity for Asian currencies continues to grow, the addition of NDFs to our global FX offering is a logical next step following the launch of our corresponding engine in SG1 in 2022. We recognize the significant potential that remains untapped in the Asian FX market and will continue to expand our product suite, expand our distribution capabilities globally and build the leading institutional FX market.”
Paul Buttenmueller, Global Head of eFX Trading, UBS, added:
“The launch of NDF trading by LMAX Exchange is a significant step forward in Singapore’s growing importance as a hub for FX price discovery. This will improve market access to local pricing for Asia’s emerging market currencies, create liquidity and support growth in NDFs volume.”
Dmitry Ilyaev, Head of eFX, Capital Markets, Commerzbank, said:
“We welcome this expansion of LMAX Group’s FX offering in the region and look forward to strengthening our position and supporting local volume growth in the NDF market. We are delighted to see one of our partners demonstrating such commitment to institutions and clients across Asia Pacific.”
Matt DellaRocca, Head of Liquidity and Analytics, APAC, LMAX Exchange, added:
“We are pleased to launch this offering, which will provide local foreign exchange market participants with access to an expanded pool of NDF liquidity through a regulated trading venue and a CLOB model that offers efficient market structure and transparent, accurate, consistent implementation. We look forward to supporting our global customers as we expand our foreign exchange offering for customers operating in the Asia Pacific region.”
About LMAX Group
LMAX Group is a global financial technology company and independent manager of multiple institutional execution venues for foreign exchange and digital assets. The Group’s portfolio includes LMAX Exchange (institutional FX exchange, FCA regulated MTF and MAS regulated RMO), LMAX Global (FCA and CySec regulated brokers) and LMAX Digital (execution venue and GFSC regulated custodian).
LMAX Group is unique in offering market access to all segments of FX clients, turning the world’s largest asset class into an open, transparent market with fair, accurate and consistent execution. The LMAX Group serves funds, banks, asset managers and retail brokerages in more than 100 countries. The Group builds and operates its own high-performance, ultra-low-latency global exchange infrastructure, which includes counterpart engines in London, New York, Tokyo and Singapore.