LMAX Limited, operating under the trade name LMAX Exchange, has published its financial statements for the year 2020, ending December 31, which shows an excellent jump in global institutional forex trading volume. According to the most recent Companies House filings, turnover on the stock exchange jumped 34 percent in a year to $4.2 trillion.
The increase in trading also led to an increase in the stock exchange’s annual revenue to 37 percent. He finished 2020 with total revenue of $20.3 million, while the previous year he made just $14.8 million.
It should be noted that LMAX Exchange is part of the broader LMAX group, and is also the parent company of two other arms: LMAX Global and LMAX Digital. These numbers only show the performance of the FCA-regulated LMAX exchange for the period.
The statement indicated that “financial markets are subject to severe tests in 2020, as news of the global pandemic emerged, with extreme volatility comparable to some of the worst periods in the history of financial markets.”
“While there was a short-term benefit to volumes in March 2020, the ensuing risk to sentiment, which persisted somewhat throughout the remainder of the year, hampered the level of volumes and revenue growth that would otherwise have been achieved in normal market conditions.”
Suggested Articles
Celer Network launches cBridge 2.0, a vastly improved multi-chain solution
Amazing growth rate
The company also highlighted that volumes in the LMAX Exchange have been growing at a 21 percent CAGR since 2016, while the rest of the FX markets are only seeing a 6 percent annual jump.
The exchange generated a total profit of 12.6 million pounds in 2020, compared to 10.9 million pounds in the previous year. After looking at administrative expenses, the exchange’s EBITDA came to £6.2 million, an increase of 32 per cent year on year.
After accounting for all other income, expenses and tax liabilities, LMAX Exchange closed the 2020 books with a net profit of £1.8m, up from £0.3m in the previous year.
“Despite the challenges posed by the pandemic and the subsequent shutdown, the operational performance has been exemplary throughout 2020,” the exchange added in the filing.
Although its operations were not affected, its new client setup process was affected by the shutdown. However, customer acquisition in Europe, the Middle East, Africa and the Americas continues to be impressive.
