LMAX Exchange

Matchmaking Model

LMAX Exchange

Recognised as one of the UK’s fastest growing technology firms (2015 Winner - Deloitte UK Technology Fast 50, Tech Track 100 Sunday Times: 2015, 2014, 2013), LMAX Exchange is a London-based FCA-regulated multilateral trading facility (MTF) for FX trading. LMAX Exchange provides a low latency, order-driven execution venue for electronic trading on the foreign exchange market (FX).

LMAX Exchange operates an “exemplar” matchmaking business model in which it provides FX order matching low latency technology in the FX industry, delivering a unique vision for global FX trading - a transparent, neutral, level playing field for all market participants, regardless of status, size or activity levels.

LMAX Exchange’s OPEN order book is driven by streaming, no ‘Last Look’ limit orders supplied by General Member liquidity providers. In a Product business model that complements its Matchmaking business model, LMAX Exchange offers a range of key products, including spot FX, precious metals, commodities and equity indices, with complete pre and post-trade transparency and order execution where no ‘last look’ is standard. Orders are executed in strict price/time priority at an average speed of 4ms. LMAX Exchange is the emerging benchmark for global FX.


Launched in late 2010 LMAX Exchange was established based on the vision that the exchange execution model is the most efficient and cost effective way to trade liquid products, such as Spot FX. In 2012 LMAX Exchange experienced a management buyout from parent company Betfair. FX volumes traded through LMAX Exchange hit $1 trillion in 2013 and grew to over $5 trillion as of March 2016. Headquartered in London, the company has Sales and Operations hubs located around the world:

  • Hong Kong – Operations + Sales
  • Tokyo – Matching engine + Sales
  • Singapore - Sales
  • United States – Sales
  • New Zealand – Technology hub

The latest published results in 2014 show the company's first year of full profits.


Global banks, funds, professional traders, brokers, proprietary trading firms, corporates and asset managers are all client categories serviced by LMAX Exchange.


LMAX Exchange offers brokers, dealers, proprietary trading firms, corporations and institutional asset managers a platform on which to trade foreign exchange. LMAX Exchange focuses on low latency industry leading technology providing transparency, low spreads, platform stability, quality execution and neutrality. LMAX Exchange’s trading technology has been recognized for excellence and innovation by the FX industry.


LMAX Exchange delivers conflict free, neutral execution and transparent cost of trade to both, the buy-side and sell-side. LMAX Exchange is not a market-maker, and unlike some ECNs, the open order book is driven by streaming, non ‘last look’ limit orders supplied by top tier banks and institutional liquidity providers. Liquidity providers include top 25 global banks and non-banks including: JP Morgan, BNP Paribas, Citadel, XTX, Citibank, Goldmans Sachs. On LMAX Exchange participants trade anonymously in an environment where all have access to the same prices, liquidity and execution quality regardless of status, size or activity levels.


LMAX Exchange only charges execution fees for trading on its platform. Trading clients pay a flat fee per million traded. There is no fee built into the spreads.







Written by Jingfei Ma and edited by James Knuckles under the direction of Prof Charles Baden-Fuller, Cass Business School. This case is designed to illustrate a business model category. It leverages public sources and is written to further management understanding, and it is not meant to suggest individuals made either correct or incorrect decisions. © 2016

Published 20 April 2016

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