LXDX is using the same high-caliber tools that power traditional financial markets to create a unique, efficient and profitable institutional-grade exchange platform for Digital Currencies. The CEO Joshua Greenwald will be discussing the project with us in this interview.
1) Please tell us your name and about yourself?
Joshua Greenwald, CEO
I’ve spent over a decade as head of desk and/or a major participant in algo trading businesses. I led an equities group at DRW before running research for Asia and heading up KOSPI trading. I co-founded Greenlight Trading, along with LXDX Chief Financial Officer John Hazen, and later ran high frequency for Laurion Capital Shanghai before working on automation and propulsion at SpaceX.
2) LXDX is an institutional-grade exchange platform for digital currencies, could you tell us more about this and how it works?
LXDX is the first exchange platform to provide the performance required, and expected, by professional traders and institutional investors. Cryptocurrency markets are highly volatile, and even in their nascent trading volumes, they strain the existing platforms. We engineered our platform to the same standards as exchanges in traditional markets—ultra low latency matching, optimized hardware and networking running in our own data centers (not the cloud), and a multitude of colocation and messaging options for users to interface with the exchange. Our founding team consists of world-class performance and infosec engineers, algo traders, and technology veterans who have tackled these problems before.
3) What are the major features and services you provide at LXDX?
LXDX is a complete trading platform. Our products include institutional dark pools, a retail exchange service platform, a data analysis product, and a host of modular blockchain services. The technology covers the full gamut of the exchange business. We provide the KYC/AML integrations to safely onboard customers, custody and blockchain wallet solutions, matching, clearing, marking, surveillance, and settlement. The trading interface is beautifully simple, yet powerful.
4) We will like to know more about your software that powers both public retail exchanges and private exchanges for institutional block trading.
The LXDX platform provides solutions for both public “lit” exchanges and private “dark pool” exchanges. From a technical perspective, our platform is a departure from the incumbent solutions and is built from scratch in highly optimized C++. The architecture is hosted on our hardware in primary market data centers such as SG1 and the engineering and policy have both been approached with an absolute commitment to fairness, not just performance. All of this enables operators to bridge the gap between market makers and both retail and institutional traders.To facilitate all types of trading customers LXDX supports web, REST, and FIX based order entry for all customers and a raw binary protocol is available for approved traders who co-locate their servers with ours. That translates to an exchange platform that is fast, secure, fair, and accessible to anyone.
LXDX allows our operators to offer their users, whether they be institutional investors, commercial exchanges, OTC desks, or simply anyone who wants to trade digital assets, to post tighter limit bid & ask orders than available elsewhere in the crypto ecosystem. This advantage allows market makers to comfortably execute large-scale orders with narrow spreads just like they are doing now on the CME, Eurex, NYSE, and other traditional financial markets. The result is a better price for all users, from a casual weekend trader all the way up to a private equity or hedge fund. With bulletproof security and custody, strict regulatory compliance, faster execution, and better prices, we want people to ask, “Why would I use anything else?”
5) What is the current stage of your project and what is the technology behind LXDX platform?
Our DX (dark exchange) product has already been in private use. We are working closely with regional partners to systematically roll out our LX (lit exchange) service for public retail use later this year. Expect some significant announcements from us soon.
6) Tell us about Dymon Asia Venture Capital Fund LP, who are they and what does their funding mean to you?
Dymon has been a remarkable ally. Their funding is a great vote of confidence in our team and our technology. Their product insights from their experience in global FX markets have already proved invaluable and they have introduced us to several collaborative opportunities. It’s a very complimentary and exciting relationship.
7) Could you give us a little breakdown on how this funding will be used?
Expanding our engineering department is top of our list. We have an amazing team of engineers, who built our technology to standards unthinkable by such a small team. That said, the scope of a high-performance exchange platform — particularly when coding down to the metal—is nontrivial. The next big ticket item is research and development. Our R&D team has several capital-intensive projects in the works that will bolster our technology offerings.
8) Do you have more opportunities for other investors in LXDX?
We made it our focus in fundraising to partner with investors who bring both capital and strategic value. We’ll continue to make this our top qualifier for future funding. As LXDX brings more products to market, there will certainly be opportunities for increased capitalization.
9) Do you have any other major funding and strategic partnerships you will like to share with us?
Several advisors have joined to provide strategic guidance as we expand into new markets. Richard Geary—with a history at PDT Partners, Morgan Stanley, Microsoft, and others—joined our advisory board and brings over a decade of experience coding low-latency markets. Richard joins cryptocurrency investor and author Arianna Simpson and Justin Litchfield of ProChain Capital, both established entities in the cryptocurrency world. Alex Disney rounds out the group. Alex most recently helped grow Cumberland Mining, which focuses on quantitative models for trading cryptocurrencies and is owned by Chicago’s largest high-speed trading firm, DRW.
10) Could you tell us about your team and technical support?
Our founders have competed extensively in latency-sensitive arbitrage businesses in financial markets throughout Asia, the United States, and Europe. Those types of opportunities attract many entrants and few winners; you are either the fastest or you’re out of business.
We learned a lot in these battles, both technically and practically. To win required knowledge and techniques not publicly or commonly known, and to squeeze every nanosecond we can out of our algorithms. The barrier of entry for other teams to reach this level is difficult to overstate. Our unique history enables us to build products of superior performance and reliability.
11) The LXDX community will be very interested to know more about the security of their funds when doing business with you. What can you tell us about your legal and security measures?
Steven Thomas, LXDX Chief Technology Officer, formerly worked within the United States Department of Defense on cryptology and signal intelligence related products. He oversees the architecture design that enables us to implement information compartmentalization that is very similar to the world’s top intelligence agencies. The hardening of our exchange technology is paramount when it comes to our back end; once we achieved performance metrics superior to other cryptocurrency exchanges, we focused all efforts on data security and safety. This includes failover mechanisms, lockdowns, physical security, and cascading failure recovery protocols.. Between our software, hardware, and live market surveillance, we don’t only aim to be the fastest, we also intend to set the standards for security and trust.
12) Do you have more information for our readers?
Founders’ and advisors’ bios: https://lxdx.co/resources/lxdx-leadership.pdf
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