British exchange platform for currency trading LMAX Exchange will launch a cryptocurrency exchange focused on institutional investors.
LMAX stated that it had developed a new Digital platform LMAX at the request of clients wishing to access the cryptocurrencies such as bitcoin and Ethereum. Customers will be able to trade bitcoin, ether, litecoin, Ripple and Bitcoin Cash-for-hour exchange.
Head of LMAX Exchange, David Mercer said:
We will try to bring cryptocurrency market on the legal basis, providing financial institutions a platform on which with a high degree of liquidity will be available cryptocurrencies, trade them and keep them safe.
LMAX will offer services for the storage of cryptocurrency clients trading on the exchange, as it is not interfered with institutional investors to engage in digital currency: banks and hedge funds are reluctant to buy cryptocurrency assets, given the difficulties with storing and security.
Exchange LMAX Exchange was launched in 2010 as a multidisciplinary platform for currency trading and since its launch has processed transactions of more than $10 trillion.
Recently, the Bank JPMorgan announced new vacant positions of head of cryptocurrency strategies, and a few weeks later, Goldman Sachs announced the intention to trade bitcoin products. According to research firm Autonomous Next, in 2017, the market appeared 167 cryptocurrency hedge funds.
So far the cryptocurrency hedge funds in the purchase of cryptocurrency has largely relied on over the counter (OTC) market-makers; transactions not conducted through a transparent and centralized exchanges. This is due to the fact that most cryptocurrency exchanges around the world are unable to handle large orders of institutional customers so that it does not affect prices. Companies like B2C2, Circle and Coinbase, become the leading OTC broker for major financial institutions, although the amounts involved are not so great compared to other asset classes.
Mercer explains:
The growth of institutional trading digital currencies will fundamentally change the rules of the game. We believe that our new exchange will contribute to the transformation of the crypto market from a peripheral phenomenon into the mainstream… of Digital currency, without a doubt, apply and get recognized. Exchanges will play a crucial role in the circulation of digital currencies, contributing to their recognition of traditional funds, which in turn will help stabilize prices.
Initially LMAX Digital will conduct its work from London, but Mercer says that the infrastructure of the data center, the company will soon be launched in new York and Tokyo to support customers in these regions.
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