Institutional FX and crypto broker LMAX Group has announced its acquisition of New York based FX HedgePool, a major institutional swaps matching service.

The parties did not disclose the financial terms of the transaction.

The FX HedgePool acquisition marks LMAX’s second US purchase in as many years. Last year LMAX acquired the FX business of Cürex, a New York City‐based institutional foreign exchange execution services and data analytics company.

The parties said that this is a strategic acquisition by LMAX Group in its pursuit to build the leading global cross-asset marketplace. FX HedgePool’s expertise in the FX swaps and forwards market, combined with the distribution scale of LMAX Group and its established reputation in spot FX and non-FX asset classes, positions the Group to provide a broader suite of solutions, via innovative technology, to institutions globally.

LMAX Group and FX HedgePool said they have a shared vision of bringing greater transparency, efficiency and fairness to the FX ecosystem, whilst providing greater market access to institutional grade liquidity. FX HedgePool’s community of both buy- and sell-side relationships complements the existing institutional client base of LMAX Group’s FX business, LMAX Exchange, which counts top-tier global banks and non-banks as its clients.

FX swaps account for over half (51%) of total daily FX turnover and remain the most traded instrument with turnover of $3.8 trillion per day (BIS, 2022). The addition of swaps to LMAX Group’s existing spot FX and NDF global offering enhances its position as the leading independent execution venue for FX trading.

Commenting on the acquisition, David Mercer, CEO, LMAX Group, said:

“LMAX Group is focused on providing innovative solutions to the market, constantly exploring ways to enhance and expand our offering for institutions. We believe that with the acquisition of FX HedgePool, our combined client base will benefit from access to a wider suite of products and increased global distribution.

“Following this acquisition and that of Cürex last year, we now have a compelling proposition for asset managers and other buy-side participants in addition to serving our core bank, broker and proprietary trading firm segments.”

Jay Moore, CEO and Founder of FX HedgePool added:

“This significant milestone for FX HedgePool and our community marks the start of a period of considerable innovation. The established yet agile, LMAX Group, complements FX HedgePool’s proven ability to introduce groundbreaking solutions for the modern trading desk. Both firms are aligned in delivering innovative products that set new standards for transparency, fairness and efficiency, and we look forward to an exciting future.”