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

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.

The UK-headquartered company's gross profit jumped 68% to US$106 million in 2021, LMAX Group announced on Tuesday.

The Group’s gross revenue also climbed 80% higher during the period compared to 2020, the company said.

Additionally, the total trading volume of the group shot up 20% year-over-year to US$5.4 trillion in 2020.

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%.

The statutory EBIDTA touched US$62 million, LMAX Group said.

Growth Factors

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.

David Mercer, the Chief Executive Officer of LMAX Group, attributed the “strong performance” to “years of investment in our market-leading proprietary technology.”

Mercer added that LMAX Group’s efforts to diversify its product offering and geographic reach contributed to the record financial results.

“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.

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.

In addition, it includes LMAX Digital, an institutional spot cryptocurrency exchange regulated by the Guernsey Financial Services Commission.

Focus on LMAX Digital

According to LMAX Group, LMAX Digital volumes reached over $500 billion during its fiscal year 2021.

“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.

A more recent signal of LMAX Digital's growth is its institutional spot cryptocurrency peak volumes reported in May following the crypto market rebound at the time.

The volumes reached $2.10 billion and $3.25 billion on two consecutive days during the month.

Meanwhile, LMAX Group in March partnered with the SIX Swiss Exchange, a major Swiss stock exchange, to launch cash-settled and centrally cleared crypto-asset futures.