Hong Kong-based ATOM Group, a global fintech company, announced on January 22, that its AAX digital asset exchange is utilizing world-class technology from London Stock Exchange Group Technology (LSEG Technology).

LSEG Technology offers robust and high-performance technology including risk management and settlement of products to customers around the world.

London Stock Exchange also confirmed the announcement in a press release on its official website on Jan 22.

The adoption of LSEG Technology’s Millennium Exchange platform for AAX is an innovative move. The technology will install institutional performance and best method into the emerging digital asset marketplace.

AAX is anticipated to launch in H1 2019 and will be the first digital asset exchange platform to use the Millennium Exchange matching engine. It enables AAX to address high performance, reliable and trusted services to investors who demand greater reassurance of security, market manipulation, and unreliable peak-period performance.

Ann Neidenbach, CIO of LSEG Technology, stated in LSEG press release that

“We are delighted to have been selected by ATOM to provide a best-in-class technology solution to help power its new exchange. It underlines Millennium Exchange’s reputation for performance, scalability, flexibility and reliability and we look forward to working with the AAX team ahead of the launch in H1 2019.”

Peter Lin, CEO of ATOM Group, stated that “The digital asset marketplace faces a critical need for more industry best practice in order to build greater investor confidence. AAX will leverage LSEG Technology’s platform and expertise to deliver a world-class exchange that provides fair, trusted and secure digital asset trading for all.”

The announcement reflects the recent Securities and Futures Commission guidelines for cryptocurrency trading in Hong Kong.

Lin further added that with organizations such as Fidelity Investments entering the market and other businesses also gearing up for entry; he speculates that the digital asset class will see the entry of mainstream investors in 2019.

Hong Kong London Stock

The agreement with LSEG Technology will allow AAX to provide:

  • Institutional-grade technology as used by global exchange platforms such as London Exchange, Hong Kong Exchange and Singapore Exchange.
  • Scalable and Compliant platform as practiced by world-class regulated markets.
  • Operational excellence and Industry standard process.

To guarantee the highest levels of security are embedded throughout operational processes, the ATOM Group has roped in global security leader Kroll for cybersecurity.

Crypto trading platforms are increasingly seeking to source their infrastructure from traditional stock exchange companies. Recently, Fidelity Investments and Nasdaq invested $27.5 million in Crypto exchange firm ErisX.

With London Stock Exchange entering the cryptocurrency arena, it might render the much-needed credibility like security cryptocurrency industry still lacks.

What do you think about AAX deal with LSEG? Share your thoughts in the comments.