LMAX Exchange Singapore – LMAX Group’s subsidiary – has received regulatory approval to offer Non-Deliverable Forward (NDF) trading in both Singapore and London.
The approval came from the Monetary Authority of Singapore (MAS) which granted the exchange a recognised market operator (RMO) licence.
Through this move and the launch of NDFs, LMAX clients will be able to hedge their FX exposure against non-convertible currencies on a central limit order book (CLOB).
The business expects this to lead to transparent price discovery, deeper liquidity and efficient market structure.
David Mercer, chief executive of LMAX Group, said: “The Monetary Authority of Singapore is among the most progressive and innovative regulators globally. We look forward to a continued, symbiotic relationship with MAS as we progress our expansion plans and build out our cross-asset product offering in the region for the benefit of local customers and the broader, vibrant, Asia Pacific market.”
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The RMO licence came following LMAX Group’s compliance with the regulator’s principles – in accordance with international standards and best practices. The factors include upholding high standards around compliance, risk management and corporate governance.
Matt DellaRocca, head of liquidity and analytics, APAC, LMAX Exchange, said: “As Singapore becomes an increasingly important hub for global FX trading, we are delighted to have the support and recognition from MAS.
“We continue to expand our product offering to meet growing local demand for transparent price discovery and access to deep institutional liquidity and look forward to strengthening our institutional client relationships across Asia.”