After 19 months of development and testing, the company said on Thursday that the exchange platform has gone live on web and mobile, targeting retail and institutional investors with spot, futures and over-the-counter peer-to-peer trading.
The LSE said previously that AAX would be the first crypto exchange to utilize its Millennium Exchange matching engine. Other major equity markets like the London one itself and the Hong Kong Stock Exchange also uses trading platform tech from the LSE.
In addition to crypto-to-crypto spot trading, AAX expects the derivatives market to be a major focus with its offering of perpetual contract futures settled in bitcoin. These contracts, which have no 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 that with the LSE’s matching engine, it can settle futures trades at an average speed of less than 0.0005 seconds. To put that in perspective, Binance advertises a low-latency settlement of 0.005 seconds for all its current and upcoming products on Binance Futures.
“LSEG Technology is delighted to have successfully deployed our world class matching engine capabilities at AAX. This is the first time that Millennium Exchange has been deployed in the cloud, bringing its, scalability, flexibility, reliability and seamless direct market access to AAX,” LSEG Technology’s CIO Ann Neidenbach was quoted as saying in a statement.
Thor Chan, CEO of AAX, told CoinDesk that the firm started in March 2018 without raising money from external investors, using its own capital to support a now 100-person team, of which 60 percent are developers.
The exchange will take a hybrid approach to the custody of customers’ digital assets, combining its own in-house storage solution and third-party institutional custodians.
Chan said he believes the partnership with the LSE will expedite the process of on-boarding institutional clients especially from the traditional financial sector for AAX’s spot and futures services.
He added that working work with the LSE will allow AAX to gain access to the stock exchange’s exclusive partner network that consists of over 300 major banks and financial institutions.
“AAX is setting the standard for the next generation of cryptocurrency exchanges, offering much higher levels of trust, integrity, performance and security than has previously been available to retail and institutional investors,” said Thor Chan, CEO and co-founder of AAX. “The combination of LSEG Technology’s matching engine with the highest standards in compliance and security protocols, position AAX as the only institutional-grade exchange in Asia serving the world’s most active and fastest growing crypto-currency markets.”