The London Derivatives Exchange has selected newcomer Exberry to provide it with matching engine technology for its expansion into new asset classes and global markets. The deal is Exberry’s first; the company launched its multi-asset class platform in June.
LDX plans to use Exberry’s platform to widen the range of asset classes it lists, from new security tokens, to traditional assets such as commodities or derivatives. Exberry’s exchange infrastructure will help LDX to deliver initiatives designed to improve the end-to-end investment model and implement processes that will drive down costs and increase operational efficiencies, to the benefit of the end investor.
According to Magnus Almqvist, head of exchange development at Exberry, the system’s scalable microservice architecture will give LDX the flexibility to add asset classes and even new markets when opportunities arises. Exberry’s infrastructure has been designed to overcome the limitations of existing exchange technology, which can be large, unwieldy and difficult to scale.
Almqvist says Exberry’s backers – Tel Aviv-based OM2 Group – saw an opportunity in the marketplace to offer an agile matching engine that allows exchange operators to respond nimbly to new market opportunities, while providing levels of corporate governance frequently absent from new platforms for cryptocurrencies or other digital assets.
The Exberry matching engine is delivered as a ‘Matching Engine-as-a-Service’ concept, and can be hosted in the cloud or on-premise. The platform uses Kubernetes to manage microservices that can be co-opted to quickly roll out new markets in weeks rather than months or years.
LDX director James Davies says Exberry’s exchange matching engine “is an important addition to our technology suite to drive our strategy to transform the investment model. We were immediately impressed by Exberry’s modern architecture, the ability to add new asset classes in a timely and cost efficient way, and their client engagement model. It means that we can utilise our trading engine to support new initiatives globally, rather than being constrained by our technology and limited in what we desire to achieve.”
Exberry’s infrastructure features a blend of exchange and secondary market trading technology and expertise. The platform was designed in anticipation of the potential of emerging digital assets and demand for alternative secondary market trading opportunities. The platform’s core matching engine is light to deploy and easy to integrate into new and existing ecosystems through well-documented APIs and easy to access sandboxes.
The Exberry venture is the latest of a series of Fintech launches by OM2 Group, whose model helps entrepreneurs launch and run their businesses. Its portfolio includes Ownera, Creditplace, Straterix, :Banked, Quartz, Block Event and Nxchange.
Almqvist joined Exberry during the first half, reporting to Erez Zada, CEO of OM2. Almqvist was formerly head of technology sales at Aquis Exchange, senior business development manager at FIS (SunGard), and UK general manager at Smarts Group’s (part of NASDAQ OMX) London office.