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LMAX Group Sees Record Growth in Gross Revenue and Profit in 2021

Finance Magnates

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<p class="MsoNormal">LMAX Group, the operator of multiple institutional execution venues for forex and cryptocurrency trading, saw record performance during its fiscal year that ended on 31 December 2021.</p><p class="MsoNormal">The UK-headquartered company's gross profit jumped 68% to US$106 million in 2021, <a href="https://www.financemagnates.com/tag/lmax-exchange-group/" target="_blank">LMAX Group</a> announced on Tuesday. </p><p class="MsoNormal">The Group’s gross revenue also climbed 80% higher during the period compared to 2020, the company said. </p><p class="MsoNormal">Additionally, the total trading volume of the group shot up 20% year-over-year to US$5.4 trillion in 2020.</p><p class="MsoNormal">Furthermore, LMAX Group reported a 103% growth in its statutory earnings before interest, taxes, depreciation and amortization (EBIDTA) as well as an EBITDA margin increase of 58%. </p><p class="MsoNormal">The statutory EBIDTA touched US$62 million, LMAX Group said.</p><p class="MsoNormal">Growth Factors</p><p class="MsoNormal">The company explained that the growth in its institutional market share across both the forex and cryptocurrency markets “despite volatility and downward pressure on volumes” contributed to the revenue jump.</p><p class="MsoNormal">David Mercer, the Chief Executive Officer of LMAX Group, attributed the “strong performance” to “years of investment in our market-leading proprietary technology.” </p><p class="MsoNormal">Mercer added that LMAX Group’s efforts to diversify its product offering and geographic reach contributed to the record financial results.</p><p class="MsoNormal">“2021 was a milestone year for LMAX Group as we successfully navigated through challenging global macroeconomic conditions to achieve record volumes, revenues, and EBITDA,” he added.</p><p class="MsoNormal">The LMAX Group includes the UK Financial Conduct Authority (FCA)-regulated LMAX Exchange, which is an institutional forex exchange; and LMAX Global, which is the brokerage arm regulated by the FCA and the Cyprus Securities and Exchange Commission. </p><p class="MsoNormal">In addition, it includes LMAX Digital, an institutional spot cryptocurrency exchange regulated by the Guernsey Financial Services Commission.</p><p class="MsoNormal text-align-justify">Focus on LMAX Digital</p><p class="MsoNormal">According to LMAX Group, LMAX Digital volumes reached over $500 billion during its fiscal year 2021.</p><p class="MsoNormal">“Over the course of the year, LMAX Digital maintained its position as the primary price discovery venue in the market and continued to drive institutional adoption of cryptocurrencies, delivering over $500 billion in volumes, up 340% year-on-year,” LMAX Group explained.</p><p class="MsoNormal">A more recent signal of LMAX Digital's growth is its institutional spot cryptocurrency <a href="https://www.financemagnates.com/cryptocurrency/as-crypto-markets-rebound-lmax-hits-highest-volume-yet-in-2022/">peak volumes</a> reported in May following the crypto market rebound at the time.</p><p class="MsoNormal">The volumes reached $2.10 billion and $3.25 billion on two consecutive days during the month. </p><p class="MsoNormal">Meanwhile, LMAX Group in March <a href="https://www.financemagnates.com/cryptocurrency/news/lmax-and-six-partner-to-launch-crypto-futures/">partnered with</a> the SIX Swiss Exchange, a major Swiss stock exchange, to launch cash-settled and centrally cleared crypto-asset futures.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.
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