GMO click’s Z.com has entered into an innovative partnership deal with LMAX Exchange, a London-based FCA-regulated FX multilateral trading facility, with a specialty in the provision of low latency, order-driven execution venue for electronic trading in the FX market. The intention of this multiple partnership is to provide a high-end liquidity pool to clients, since the third party bridging specialist PrimeXM is involved in the occasion. This aim of this third party is to help Z.com and LMAX Exchange, to launch the low latency liquidity bridge effectively.
This joint venture will basically help bolster liquidity solutions to clients as well as enhanced execution systems. This is a great industry stride as this helps breach the issue of “last-look”, which some liquidity providing banks have been alleged to use for unfair client practices, one of which is the recent issue faced by Baclays bank. Therefore, this will serve Z.com well to enable clients to easily access the liquidity from LMAX Exchange through PrimeXM, which helps breach the challenge posted by possible last look dealings by other liquidity providers.
The LMAX Exchange’s London-based (LD4) matching engine will be providing the limit-order liquidity to market participants and clients. With access to about 80 FX instruments and a matching speed on average of four milliseconds, it is inevitable that it reduces the latency. Also the partnership between Z.com and LMAX Exchange will extend to include the liquidity from the company’s Tokyo-based matching engine (TY3).
Stakeholders in the deal have aired their enthusiasm with the following statement;
Mr. Andreas Wigstrom, respectively the Head of international development at LMAX Exchange, provided his view upon the long-term partnership between the two parties: “This next stage of our partnership with Z.com Trade extends the reach of LMAX Exchange technology and delivers unparalleled execution experience to a broader international trading community. Our alliance brings together the unique strengths of our companies, enabling us to further capitalise on growth opportunities in emerging and established markets.”
In return, the general manager at Z.com Trade, Mr. Nick Cropper, also commented upon the long lasting partnership: “Extending our partnership with LMAX Exchange to now include MT4 client access is an important step. In these uncertain times, the Z.com Trade and LMAX Exchange partnership delivers strong value to our clients by offering both the security of trading with the world’s largest retail FX provider and access to the completely transparent, no ‘Last Look’ exchange quality execution provided by LMAX Exchange.”
The head of global sales at PrimeXM, Mr. Richard Bartlett, expressed his good perspective on the alliance through saying the following: “We feel privileged to be a part of this innovative alliance. We will be facilitating this setup through the use of our market leading ultra-low latency trading software, backed up by our dedicated Equinix datacentre infrastructure. This will allow LMAX Exchange and Z.com Trade to offer potentially the finest trading experience and tightest pricing commercially available,”