Global expansion further bolsters Equinix’s electronic trading ecosystem in Japan
Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that LMAX Exchange, the first Financial Conduct Authority (FCA) regulated MTF for foreign exchange spot transaction, has launched a matching engine in Equinix’s International Business Exchange™ (IBX®) data center in Tokyo (TY3). Given the success of its matching engine in Equinix’s London data center (LD4/5), LMAX Exchange is adding a matching engine in Japan, a major milestone in global expansion for the company. It will give brokers, asset managers, funds and banks in Asia Pacific access to LMAX Exchange at execution speed of less than 4ms.
Tokyo ranks as a leading foreign exchange hub globally, recording a daily average of $372.7 billion in foreign exchange trading, including spot transactions, futures, currency swaps and options, according to data from the Tokyo Foreign Exchange Market Committee . As the world's third-largest currency-trading center, accounting for over 40% of the global retail FX volumes, foreign exchange transactions in the Tokyo market are high.
LMAX Exchange delivers exchange style, visible liquidity and committed pricing, with low latency execution and complete trading transparency to both buy and sell-side institutions. With a remarkable three-year growth of 307.8 percent in annual sales, Japan represents a key market for the LMAX Exchange, as it continues to focus on the successful execution of its global growth strategy.
By launching a matching engine in TY3, LMAX Exchange joins the growing community of leading financial institutions in Equinix data centers around the globe. The expansion by LMAX Exchange further enhances Equinix’s global electronic trading ecosystem, providing the interconnection options that companies need to meet business demands.
Strategically located within Tokyo’s city center, TY3 offers LMAX Exchange the advantage of close proximity to major financial exchanges in Japan, as well as liquidity providers and institutional investors who are increasingly adopting cross-asset trading execution strategies, including FX. Close proximity to the Japan Exchange and Tokyo Commodity Exchange combined with access to the broadest choice of networks in the region, enables LMAX Exchange to deliver consistent low latency (under four milliseconds) to its customers in Asia Pacific.
Given the success of its matching engine in Equinix London data center (LD4/5), LMAX Exchange decided to expand its footprint with Equinix in Japan to meet the growth of its customer base in Asia-Pacific and ensure its customers benefit from the same low-latency trading environment.
David Wilkinson, senior director, financial services and enterprise, Equinix Asia-Pacific: “The deployment of LMAX Exchange in Japan signifies the exuberant growth in the region, as financial services providers and FX trading platforms expand into Tokyo. It also enhances the TY3 electronic trading hub, demonstrating the strength of Equinix’s global financial ecosystem.”
David Mercer, CEO of LMAX Exchange: “LMAX Exchange is leading the industry towards transparency, as we’ve witnessed a real shift in FX trading towards transparent price discovery and a level playing field over the past few years. With clients in over 80 countries, our main objective is to deliver consistently low latency and exchange quality execution around the globe. Now, with the deployment of the Tokyo matching engine in TY3, we are pleased to announce that LMAX Exchange can now offer the same low latency execution in under 4ms, that all our clients enjoy in LD4, to our clients in Asia-Pacific.”
Andrew Phillips, Director of Technical Operations at LMAX Exchange: “With the deployment in TY3, we gain close proximity to major financial institutions in Japan. Proximity combined with access to the broadest choice of networks means our Tokyo matching engine can deliver sustained processing capacity of 40,000 orders per second, giving us a significant competitive advantage in the region.”