LME phone market under threat from pre-trade transparency regulation

The London Metal Exchange is opening a market consultation period regarding its approach to pre-trade transparency, and has suggested three possible ways to meet the requirements set out by the European Union’s MiFID II regulation, it said in a note to members on Tuesday January 15.

The LME has a threefold approach to trading, which involves face-to-face trading in the physical ring, LMEselect’s electronic platform, and the inter-office telephone market. It is pre-trade transparency in the telephone market, where market interactions take place in an area not maintained by the LME, that is under the spotlight. The requirements for both pre-trade and post-trade transparency in the trading of financial instruments in the EU were expanded by the trading bloc’s updated Markets in Financial Instruments Directive (MiFID II), which was approved in April 2014 and became effective on...

Published

Hassan Butt

January 16, 2019

13:20 GMT

London