LME Close To Appointment Of Technology Provider And On Course For Change Of Company Structure

The LME today announced that it is close to finalising a decision on its screen trading technology provider with the aim of having a system available in the second half of 2000. That partner will be a world class organisation readily capable of meeting the demanding timescale the Exchange has set to provide the market with a screen trading capability that members and users want it to develop. The Exchange also confirmed it is progressing well with its plans to complete its change of company structure. This follows constructive responses to its consultation document on proposals for demutualisation. It is intended that a final timetable for an Extraordinary General Meeting will be settled at a further board meeting later this month.

Following a board meeting today the LME Chairman, The Lord Bagri, CBE said:

"The chief executive and I have seen the majority of our active membership since our consultation document was issued. In addition the LME has received many written responses and we have consulted beyond our membership with various industry groups.

"The process has been intense and we are now preparing comprehensive summaries of responses. One of the most interesting aspects has been the diversity of responses within that generally highly supportive context. Our next step is to develop from the responses a final series of proposals for the board to agree in the next few weeks. We shall then finalise a timetable that will meet everyone's requirements of fairness and openness with sufficient time to meet our target date of the end of the year.

"The LME is making tremendous progress in taking forward two important and demanding strands of work. We have no doubt about their importance and timeliness. We intend to bring our work to a successful conclusion so that we can continue to develop our business in a new environment while reinforcing our dominant position in non-ferrous metals futures. This is an extremely exciting time for the LME."

Commenting on the LME proposals to introduce a screen trading system in the second half of the year Mr David King, chief executive, said:

"The LME has now received proposals from the top technology providers in the world and is close to finalising the analysis of them. Further intensive work remains in the next few days but we are already assured that the capability and willingness to provide what the LME wants is readily available. The Board and I, supported by our practitioner information technology working group, are totally confident that a state of the art system will be operational at the London Metal Exchange within the next few months. Preparatory work that will facilitate the introduction of the system is already will advanced.

"The system will have an open architecture and will be extremely flexible, fast and user friendly. It will provide a world-class additional trading mechanism for the world's premier metals exchange. Taken with a highly liquid open outcry market we shall provide a unique trading proposition. The ring remains and we shall retain it so long as the members and market users want to conduct significant business through it."