The LMAX management buyout is backed by a group of private investors that includes Betfair co-founder Ed Wray. The final deal is subject to FSA approval.
“The LMAX Exchange business has great momentum,” says Wray. “As a result, and as a long-standing passionate advocate of the exchange model, I am very excited to be part of the team buying the business.”
Betfair – which has recently come under new management – agreed to the LMAX management buyout after making a decision to focus on its core business investments rather than maintain a controlling stake in the FX exchange.
Betfair would, however, retain a 33% stake in LMAX under the terms of the deal.
Since its launch in April 2011, LMAX has set itself apart from the rest of the FX dealer platform space with a unique business model that could one day give it the edge needed to succeed in the crowded space in the market.
There were more than a dozen new FX multi-dealer platforms launched in 2012 by a variety of players, many of which were looking to cater to institutional clients.
However, after 16 months and seven quarters of consecutive growth, LMAX has a fully funded three-year business plan and is consistently outperforming its growth targets.
The platform has delivered 20% monthly growth in trading volumes, revenues and client numbers since October 2011.
“Our new status as an employee-owned company gives the business the required flexibility to rapidly grow and evolve,” says LMAX CEO David Mercer. “We have a clear strategy and roadmap to build LMAX Exchange into a leading FX venue globally in three to five years.”