Thirty three member firms are connected to the system and for the first time today accredited traders will be able to execute trades via the screen in addition to open outcry in the ring and the traditional telephone market. LME Select - a member-to-member order matching system- has been developed for the LME by Swedish technology company OM Gruppen.
The Lord Bagri CBE, Chairman of the LME, said today 'This is a landmark occasion for the LME. We are delighted to announce that the system has been completed to budget and by the original launch deadline. Our members have indicated for some time that they would like an electronic trading option to complement open outcry in the ring and our telephone market and we are convinced that LME Select is the best system for that job.
'During 5 weeks of training, more than 325 traders from member firms have been accredited to use the system and the feedback we have received from the marketplace has been very positive. Traders have been impressed by the functionality of LME Select and the versatility with which it can be adapted to their individual needs.
'The LME has recently undergone great change with its successful restructuring and demutualisation into a shareholding entity. The introduction of LME Select is another example of the way the Exchange is proactively maintaining its position as the world's premier non-ferrous metals market.'
Work began on LME Select when the LME appointed OM as its technology partner in September 2000. The system was delivered to the LME by December 2000, allowing up to two months for exhaustive testing and a period of mock trading before it went live. LME Select is being released to the market in two phases. Release 1 is the base on which all the complexities of the LME will be built for Release 2. Release 2 is expected to go live in summer this year.
LME Select is based on OM's Click trading system which has been adapted to the specific needs of trading on the LME. It will operate from 7:30am to 7:30pm with a 45 minute break from 12:30. This will focus all liquidity on the trading floor during the official ring. The LME is absolutely determined to maintain the integrity of its reference price discovery for the benefit of the global metals industry.
