AAX, cryptocurrency exchange based in Hong Kong are using the London Stock Exchange (LSE) ‘s matching engine technology, has been officially launched.
After 19 months of development and testing, the company said on Thursday that the exchange platform has gone live on the web and mobile, targeting retail and institutional investors with spot, futures and over-the-counter trading of peer-to-peer.
LSE said earlier that the first crypto AAX will exchange matching engine to utilize its Millennium Exchange. The other major stock markets such as the London one of his own and the Stock Exchange of Hong Kong are also using technology trading platform of the LSE.
In addition to the crypto-to-crypto spot trading, AAX derivatives market expects a major focus with the victims of perennial futures contract settled in bitcoin. This contract, which does not have an expiration date, will be tied to the performance of five digital assets – bitcoin, ether, ripple, litecoin, and EOS – with up to 100 times leverage.
AAX claims the LSE matching engine, it can be settled futures trading at an average speed of less than 0.0005 seconds. To put that in perspective, low-latency Binance settlement advertise 0.005 seconds for all current products and future in Binance Futures.
“LSEG Technology pleased to have successfully deployed a world-class matching engine capabilities in AAX. This is the first time that the Millennium Exchange has been deployed in the cloud, carrying her, scalability, flexibility, reliability and direct market access without limits to AAX, “LSEG Technology CIO Ann Neidenbach was quoted as saying in a statement.
Thor Chan, CEO of AAX, said CoinDesk that the company began in March 2018 without having to raise money from external investors, using their own capital to support the 100-person team now, of which 60 percent is the developer.
exchange will take a hybrid approach to the custody of customers’ digital assets, combining its own in-house and third-party storage solutions keeper institution.
Chan said he believes the partnership with the LSE will expedite the on-boarding process of institutional clients primarily from the traditional financial sector to the spot and futures this AAX service.
He added that the work to work with LSE will enable AAX to get access to exclusive partner network of stock exchanges which consists of more than 300 major banks and financial institutions.
Michael Wong, COO of AAX, said CoinDesk:
“We are in the progress of discussions with major institutions both from traditional markets and crypto markets as well. … We have a number of live conversations going on with serious institutional clients right now. But unfortunately, I’m not allowed to disclose any names at this point. “
Earlier this year, the Intercontinental Exchange, the parent company of the New York Stock Exchange, launched Bakkt, long-awaited market for the physically-settled futures bitcoin targeted at institutions. Chan said Bakk’ts tiered system, which requires a registered broker to serve as an intermediary, could be an obstacle to broaden its client base.
That is where he believes AAX have advantages.
“This is different. Bakkt has been physically delivered contract. So they need to have a broker network to help carry out the settlement. This is actually a barrier for them to acquire users,” said Chan.
On the retail side, AAX use the same strategy for the exchange of such Huobi or OKEx by enabling peer-to-peer OTC trading as fiat in the streets to support the Chinese yuan, US dollars and Hong Kong dollars.
“For us, we do not give a fiat deposit or withdrawal method for the user,” said Chan. “We were not allowed to take deposits or withdrawals from the Chinese mainland. It is not appropriate to do so. But if it’s just the deal of peer-to-peer, something that is allowed in mainland China. ”
AAX launch comes just a day after the Securities and Futures Commission of Hong Kong (SFC) released a warning on the exchange that offers cryptocurrency futures are traded in Hong Kong.
Companies or individuals that offer futures contracts crypto without proper license or authorization may be regarded as violating the regulations in the city depend on the structure of the product, the SFC said, adding:
“Every person who operates a platform offering or perdagangan’kontrak berjangka’diperlukan to be licensed or authorized under the SFO unless an exception applies.”
SFC has not licensed or authorized any person in Hong Kong crypto offer futures and add given the risks associated with this type of product, it “will not be possible to grant a license or authorization to carry on business in the contract.
Terms when AAX is Usage declare that it will not offer a service to users from various jurisdictions including the United States, Venezuela, Iran, Iraq, North Korea, or other countries sanctioned by the US or the EU, although excluding the Hong Kong in the list of restrictions.
In response to the latest warning SFC, the company said:
“We welcome the SFC’s latest guidance on virtual asset futures contracts. We are now studying very closely whether any of the instruments we offer fall under the SFC’s guidance. AAX has always envisaged operating in regulated markets for cryptocurrencies that encourage innovation but that also provide investor protection and we will take appropriate steps to ensure we are operating within all applicable regulations in all the markets where we are active. “
London Stock Exchange image via Shutterstock