LMAX Group has launched FX non-deliverable forwards (NDFs) which are available to trade in two matching centres: Singapore (SG1) and London (LD4).
The launch follows the Group’s global institutional FX exchange, LMAX Exchange, receiving a Recognised Market Operator (RMO) licence from the Monetary Authority of Singapore (MAS) in November last year.
Read more: LMAX Group given green light for NDF trading in both Singapore and London
The FX NDFs are traded on a central limit order book (CLOB), delivering transparent price discovery and execution to all market participants including banks, non-banks, proprietary trading firms, institutional brokers, asset managers and buy-side institutions.
“We are delighted to go live with this offering, which will provide local FX market participants with access to an expanded pool of NDF liquidity through a regulated exchange venue and a CLOB model that delivers efficient market structure and transparent, precise, consistent execution,” said Matt DellaRocca, head of liquidity and analytics, APAC at LMAX Exchange.
“We look forward to supporting our global customers as we expand our FX offering for customers operating in the Asia Pacific region.”
The launch will initially target Asia Pacific and will support increasing regional demand for FX NDF trading and access to institutional liquidity as well as enhanced FX market structure.
LMAX Exchange’s FX NDF trading via Singapore and London will initially offer top Asian USD crosses including Indian Rupee (INR), South Korean Won (KRW), New Taiwan Dollar (TWD), Chinese Yuan (CNY), Indonesian Rupiah (IDR), Philippine Peso (PHP) and Malaysian Ringgit (MYR), with LATAM crosses expected to be offered at a later stage.
“The launch of NDF trading by LMAX Exchange is a significant step forward in the growing importance of Singapore as a hub for FX price discovery,” said Paul Buttenmueller, global head of eFX trading at UBS.
“This will improve market access to local pricing for Asian emerging market currencies, building liquidity and supporting volume growth of NDFs.”