LMAX exchange manager David Mercer saw his salary double in 2021, after the company had a strong year across both the traditional exchange and the new crypto offering.
Mercer, chief executive for more than 11 years and the biggest individual shareholder in the industry, was paid £1.6m in 2021, double the £800,000 the previous year, according to results published on 2 November.
The London-based operator cashed in despite what Mercer described as a “challenging” global economic environment last year, doubling profits to $62 million. Total trading volume across the group reached $5.4 billion, up 20% year-on-year.
These volumes were boosted by a 340% year-over-year increase for LMAX Digital, the spot crypto exchange launched in 2018, reaching $500 billion.
LMAX now has more than 600 institutional clients trading on its crypto platform, according to the results.
The firm is also in hiring mode across the crypto space. LMAX Group has more than 250 employees. Around 75 work for the digital arm, a number that has doubled during 2022.
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The soaring volumes for the company’s crypto arm came as tokens such as bitcoin doubled in value during 2021, hitting a record high of more than $67,000 last November.
However, crypto prices have fallen significantly since then. The collapse of stablecoin terraUSD and its companion cryptocurrency luna triggered a broader market crash in the second quarter of 2022.
Bitcoin, the world’s largest cryptocurrency by market capitalization, has hovered around $20,000 since early September.
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Analysts say cryptocurrencies — which have become more correlated with the broader stock market this year — are unlikely to break away from their current range until the Federal Reserve starts cutting interest rates.
Speaking at an industry event in October, Mercer said there will be institutions that provide a return to better times for crypto prices.
“The weight of institutional money will pull us out of this downturn,” he said. “The value of the asset class is much higher than the previous bear market. The ecosystem looks more solid and diverse, and it looks more institutional.”
Reporting back from a recent trip to Washington, he estimated only a roughly 10% chance of the US passing crypto legislation this year – a factor that has been cited as a barrier to institutional adoption – but said “legislation is inevitable” in the next Congress.
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