LSEG Technology, the technology solutions provider for the London exchange group, has declared that its matching engine is going to be used to power a brand new Hong Kong-based digital assets exchange. The news was declared in an LSEG Technology press release January. 22.

The forthcoming digital assets exchange — dubbed AAX — comes from blockchain and crypto-focused fintech firm ATOM group. The platform can reportedly become the primary digital assets exchange to use LSEG Technology’s so-dubbed “Millennium Exchange,” that is a low latency and scalable matching engine already reportedly in use at ancient exchanges like LSE, Borsa Italiana, the Oslo exchange, and others.

AAX — that is slated for launch within the first quarter of this year — can reportedly use the LSEG matching engine to create the basis of its core trading platform. Speaking of the deal, ATOM group chief executive officer Peter Lin said the technology would facilitate deliver “greater levels of fairness, transparency, and performance” for crypto traders.

The licensing deal between a stalwart thought market solutions provider and an nascent disruptive platform apparently aims to mitigate issues over security, market manipulation, and high-volume performance within the crypto trade.

In the Hong Kong context, there are recent indications from the local securities regulator, the Securities and Futures Commission (SFC), that a legal framework to manage crypto exchanges is into account, with the SFC chairman stating last October:

“We must see if and how these [digital assets trading] platforms is regulated to a customary that's like that of a accredited trading venue, whereas at the same time guaranteeing investors[‘] interest[s] are being protected.”

In November, the SFC released details of its evolving planned conduct regulation for crypto exchanges, aboard guidelines for funds dealing with cryptocurrency. As Hong Kong’s formal crypto regulatory environment continues to require form, some native lawyers have warned that new rules might prove cumbersome or perhaps harmful for brand new entrants to the crypto trade.

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