London-headquartered multilateral trading facility LMAX Exchange has just published its 2016 results via a regulatory filing with UK Companies House. The firm is reporting a positive outcome with its significant investments in 2015 paying off handsomely.
LMAX reports that the company’s revenues amounted to £27.7 million ($35.8 million) which is higher by 20 percent when compared to the previous year. Gross profit is reported at £20.8 million ($26.9 million) which is higher by a third when compared to the full year 2015. Gross margins increased to 75 percent from 2015’s 69 percent.
The company’s bottom line also significantly improved with a net profit of £2.2 million ($2.9 million) for the full year in 2016. A record in annual volumes is marked with a total of $2.1 trillion for the full year, which amounts to about $175 billion per month throughout the year. LMAX reports that it has over 5,000 active clients.
LMAX reports a 52 percent increase in institutional trading volumes throughout last year and a 55 percent increase in trading volumes from the key AsiaPac region. According to the firm’s annual report, its client mix shifted more towards exchange clients and away from brokerage clients. But in the fourth quarter of the year, exchange clients represented 60 percent of total volumes.
The second half of the year was the more active period for LMAX with Brexit and the US presidential election contributing to volatility and consequently trading activity. The firm recorded its best month in November in the aftermath of the US election, when it marked an average of $10.5 billion daily in trading volumes.
Client funds held at the company increased somewhat to $150 million ($144 million as of the end of 2015).
The firm is expecting continued growth in revenues in 2017 with the integration of bilateral clearing into the trading facility empowering it to continue growing its market share. The modification allowed the company to acquire additional institutional clients.
Source: Finance Magnates