The London Metal Exchange is to invest £1 million in new infrastructure and software systems to help modernise its ‘open-outcry’ trading floor.
Known as ‘the Ring’, the face-to-face trading venue has serviced the global metals industry for 137 years, and is the only remaining venue of its kind in Europe.
As part of plans announced today to continue to maintain and invest in the Ring, LME says it will provide technology to enable tighter integration with its FIX-based electronic trading venue, LMEselect, including new software systems and pricing boards. The majority of LME's trades now go through the electronic venue, set up in 2001, which runs on the TRADExpress Trading System from Swedish develop Cinnober.
“Our review has highlighted areas where we can enhance the Ring and increase its efficiency alongside the LME’s other trading venues,” said LME CEO Garry Jones.
“We will be particularly focused on further aligning it with our electronic trading venue, LMEselect, and on ensuring that it continues to meet global standards for transparency, integrity and governance.”
He added: “While we value the Ring’s long and distinguished history, we are conscious that we need to continue to keep it relevant for the global market and able to serve its needs.”
The decision follows a six-month review of the trading venue, put in place after the LME was bought by HKEx in December 2012.
LME announced in May that it had ‘insourced’ 100 IT staff, after cancelling its £25 million a year contract with service provider Xchanging.