FOCUS: Will the LME’s new trading platform launch bring desired functionality to market?

The London Metal Exchange’s plans to launch a new trading platform in 2021 could bring a host of new functionality enhancements to its electronic and inter-office market, from variable tick sizes to additional order types and greater self-service user management.

Yet with the LME also targeting the eventual decommissioning of its current LMEselect electronic trading system – which was first introduced in 2002 – industry experts at a recent LME panel discussion assessed the future of a market that could see further migration to electronic trading. In practical terms, the LME’s proposed trading platform improvements will include a new financial information exchange (FIX) interface, allowing for greater user connectivity, while enhancements to its graphic user interface (GUI) will allow both client and member access, as well as being browser based. Functionality improvements will see the LME bolster intraday strategy and option series creation outside of a member’s order flow, while participants may also benefit from increased implied pricing routes, variable tick sizes, and custom strategies. As another example, market liquidity for carry trades in the LME’s spread market, characterized by the LME’s unique rolling three-month prompt date...

Published

Hassan Butt

November 05, 2019

12:42 GMT

London