Leveraging the London Stock Exchange, currency trading by encryption AAX to pave the way for traditional institutions admission

 Leveraging the London Stock Exchange, currency trading by encryption AAX to pave the way for traditional institutions admission

The more frequent the traditional areas of giants in the field of action chain block.

In January this year, the British “Financial Times” reported that the London Stock Trading Group (LSEG) London Stock Exchange Group is trading AAX and encryption (Atom Asset Exchange) monetary cooperation, London Stock Trading Group transactions will be used to encrypt the Atom group’s new currency trading by AAX.

AAX is expected to be launched in the first half of 2019, and will be used in London, Hongkong, Singapore and Johannesburg stock exchange using the London Stock Exchange system. This is the London Stock Exchange for the first time and encryption currency exchange to carry out strategic cooperation.

Hear this, insiders curious, why buy the London Stock Exchange System? Feel a bit “, currency exchange circle now put fine timber to petty use” pain point is not the technology, but was off. If the user and the trading volume to make system downtime, the exchange may overjoyed.

That approach with the traditional currency exchange circle

The daily planet Odaily recently interviewed Atom CEO from Peter Lin, his answer can be summed up in two.

“What we do is a long-term thing.” Peter said, know that you can cut a leek to make money, but do not want to earn this money. He build Atom group in early 2018, “at that time, bitcoin and all kinds of crazy copycat currency financing, we will certainly feel the bubble burst, when low tide to know who is swimming naked.”

During the conversation, Peter specifically mentioned money, he attributed the success to currency an ahead of the layout, and focus on technology, so when the opportunity comes to “hold”, little downtime, Caton etc.. “Zhao Changpeng started exchange technology in 2015.” (Note: the daily planet Odaily but some people say that IEO has been showing loading, did not grab a share……)

AAX also hopes to achieve ready to meet the incremental market, namely the traditional institutional investors.

At that time I felt the correct development trend of block chain should be combined with the traditional market, more compliance can, we hope that the transition from traditional market. We see at the end of 2018 when the NYSE and NASDAQ are admission that traditional investors will come in.”

Peter believes that the currency circle of the biggest pain point of capital (quantity) and compliance, “the exchange to carry the banner of compliance”. If there is a bull market currency (the need of funds into the future encryption), not only rely on the existing retail brings, is the traditional approach relying on professional investors.

This is why, after the traditional stock exchange in digital currency, total concern.

So far, the world exchanges have been involved in the field of public encryption currency exchange. After 2018 years in the second half of the year, the NASDAQ provides support for DX.change encryption currency exchange, NASDAQ again in 2018 at the end of the year announced an investment of digital currency exchange ErisX and fidelity; 8 months to 2018 years, the NYSE’s parent company Intercontinental Exchange (ICE) created the Bakkt crypto currency futures exchange, Li Jiacheng’s harbor investment, Starbucks so, are holders of Bakkt equity.

With a view of the traditional exchange resources, many customers, digital currency exchange has its blessing once on-line, will attract a large number of traditional financial capital admission, bring a wave of the bull market.

On the other hand, the traditional exchanges, financial institutions themselves also need to have new technology, they can approach is the premise of compliance, so they need to gradually regulate to the field of digital currency, to promote the field of compliance with regulatory.

In other words, the market needs to traditional investors brought in digital currency exchange.

Currency exchange circle can not meet the traditional requirements of investors

After the establishment of Atom, the first choice of products do exchange, “is that this business model is relatively mature, but also the formation of brand appeal”. The user is aimed at the traditional investors exchange.

Peter believes that core competence is the exchange of throughput and delay.

The traditional investors in a large amount of funds will be more concerned about this.

Delay and system capacity is not enough, the user may cause loss of funds. Such as futures, futures for the user and platform, need to open. If the platform capacity is not enough, users often encounter the peak of the business do not hang on the list; in order to avoid this risk, the user can choose in advance or there may be wearing out.

“The traditional exchange is a very big thing, the engine block is great, carrying capacity, delay, stability is very important.” Peter also says the London Stock Exchange’s R & D team has 600 people, almost no currency exchange ring can reach this level. “So we began to find Michael, and the London stock exchange cooperation began in the middle of 2018.”

He mentioned Michael Wong is VP AAX technology, has solved in block IBM, the financial industry chain development plan, participated in the London Stock Exchange Group projects, to help improve the performance of lse. “Most of the world’s top stock exchange technology provider is the London Stock Exchange or the Nasdaq stock exchange.”

“I began to think of himself, found the institution level, to do a lot of years to achieve our requirements.” At the end of the London Stock Exchange Atom cooperation, commitment to include: high concurrency, low latency (1 million per second) (each 0.0001), high stability (99.999%). This platform can hold the world’s largest trading volume of traditional financial market institutions, enough to meet user requirements for a mature market of.”

In addition to performance, the London Stock Exchange to provide and meet the system rules over regulation. “Exchange brokered specific rules to develop, are related to compliance. We understand that there are some traditional institutions are very interested in investing a virtual currency, but in the end because there is no compliance trading places and give up. AAX adopts the LSE compliance technology and operation mode, hoping to pave the way for the user admission mechanism.”

The Atom team currently has a 60 based technical personnel system, wallet, clearing system is part of the post-trade research. Cooperate with the London Stock Exchange is the main part of engine matching. Due to the main engine for the stock market, unlike the currency market as 24 hours of operation, so the cooperation between the two sides of the optimization.

The LSE is their strategic partner, will provide help to AAX in operations, compliance, and other aspects of experience for the customer. AAX said, although the platform is not yet released, but has signed a number of institutional clients, some of them are measured.

AAX is set on the standard currency, but that token compared with the traditional financial market is still very small. “Utility Token, we still feel more opportunities from STO, hope that the traditional financial market chain block, a small part of the chain. But the biggest problem is that compliance. “

The traditional approach of investors still need other conditions

The LSE AAX undoubtedly bring brand endorsement, but that does not mean absolute success.

After all, the traditional money ring leek do not care about the technology behind the exchange has many strong, there is no more about a hundred times ten times the money; there are many conditions of traditional investors large-scale approach, encryption currency exchange is only a mature.

Galaxy Digital CEO Mike Novogratz once said that hosting service credible is the premise of institutional investors, commodity traders admission. He believes that the bull market is coming, hosting service depends on digital assets, such as wallet service and key storage solutions.

Thomas Lee research director former JP Morgan chief equity strategist, Fundstrat Global Advisor believes that once the bitcoin ETF license, a large number of currency capital expected to flood the market, not only the price will respond quickly, at the same time for bitcoin wind assessment will have a positive impression.

However, recently, the highly anticipated bitcoin ETF hit. SEC (SEC) received seven consultation response, six is bitcoin ETF, think bitcoin volatility is too large, the problems of market manipulation. The discussion about whether bitcoin ETF may have been delayed until the fourth quarter of 2019.

At the same time, known as the bull market of light Bakkt launch date has been pushed back: from the end of last year to January 24th this year, in February 11th, ICE CEO said it will postpone. As the futures exchange, Bakkt has been waiting for the US Commodity Futures Trading Commission (CFTC) approved the bitcoin futures contract products. Physical delivery + no leverage is its unique.

Moreover, if the block chain itself is not a large-scale landing to support its token value, even if investors can pull the traditional approach, only bitcoin.


I’m Odaily the daily planet editor Lu Xiaoming, exploring the real exchange block chain, broke the news, please add lohiuming, please note Name, unit, position and reason.

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