LSE, the London Stock Exchange is setting its foot in the crypto arena as it has decided to power a new Hong Kong-based digital assets exchange. LSE has announced that it will implement it through its technology solutions provider called LSEG Technology.
The matching engine of LSEG Technology is Millennium Exchange which will be used to power the new crypto exchange platform named AAX in Hong Kong. The exchange is being launched by the ATOM Group, a fintech firm in Hong Kong. LSE chose to power the exchange considering the concerns about the safety of such platforms. Generally, crypto entities do not get embraced by traditional investors easily, due to the regulatory and security issues existing in the technology used in the crypto sector.
Lorne Chambers, global head of sales and marketing at LSEG Technology talked about the exchanges noting, “If you look at the traditional market, there is a limited number of traditional exchanges, But there are a number of crypto exchanges springing up.”
LSEG Technology’s Millennium Exchange is low latency and scalable matching engine. Also, it is already being used at traditional exchanges such as LSE, Borsa Italiana, the Oslo Stock Exchange and more. However, the first ever crypto-based exchange to use Millennium Exchange will be AAX. The exchange is expected to be introduced in the first half of this year. Here, CEO at ATOM Group said that Millennium Exchange will help to develop a platform that ensures “safe, trusted and secure” trading for both retail and institutional investors. This will make AAX build a “scalable” and “compliant” crypto trading platform.
The CEO also adds, “One of the things we see in crypto is a lot of people have built their own technology”, adding, “One of the things we need moving forward is to bring in more technology from regulated markets to make sure this is safer for investors.” He believes that the technology would be useful to deliver “greater levels of fairness, transparency, and performance” for crypto traders.
Crypto exchanges have been utilizing the technologies which are being used by the traditional institutes to detect any illicit activities. Previously, famous crypto exchange Gemini used Nasdaq’s SMARTS Market Surveillance technology to spot potential price manipulation or other fraudulent activities. Another exchange platform DX.Exchange also deploys a matching engine product from Nasdaq.