A new Cryptocurrency exchange is opening in Hong Kong but will have a cutting-edge twist to it. It will make use of the same trade-matching technology that is used by the London Stock Exchange (LSE).
The technology in question is the Millennium Exchange matching engine and it was announced on January 22, 2019, that it will be deployed on AAX, a new Cryptocurrency exchange that is being launched by ATOM Group, a fintech firm based in Hong Kong.
AAX, which is scheduled to be launched in the first half of 2019, will the first in the world to make use of the Millennium Exchange matching engine.
This isn’t the first time that the matching engine is being used in exchange besides the London Stock Exchange as it has also been used in the Hong Kong Stock Exchange (HKEX) and the Singapore Exchange (SGX).
However, this is the first time a Cryptocurrency exchange specifically is making use of it
and this could help set a new world-class industry standard.
According to the statement by ATOM Group, the use of this tech will enhance the performance of the exchange when it is launched.
“The adoption of LSEG Technology’s Millennium Exchange platform for AAX represents an innovative move to embed institutional performance and best practice into the emerging digital asset marketplace,”
the statement said.
The exchange will act as an institutional grade platform for investors and there are plans to follow the newly created Securities and Futures Commission guidelines for cryptocurrency trading in Hong Kong.
This is imperative as in order to attract the institutional-level investment that crypto exchanges need, the investors need to have confidence that all laws are being followed and with stricter regulations put in place, compliance is key.
“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,”
said Peter Lin, CEO of ATOM Group.
Besides compliance with laid-down government regulations, the exchange will also take measures to ensure the security of the exchange by gaining the services of Kroll, US-based security. This is particularly important in light of the hacks that have taken place at various exchanges in the last year, with hundreds of millions of dollars being lost in the process.