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The London Metal Exchange (LME) has announced Kynetix Technology Group as solution provider for the new LMEsword system.
LMEsword is being developed in order to replace the existing SWORD system, currently operated and managed for the LME by LCH.Clearnet, for the creation, storage and transfer of LME warrants.
The LME is proposing, with the new system, to bring the operation and management of this key, strategic system in-house under direct Exchange control. The introduction of the new system will provide efficiencies, and the ability to bring new products to market more rapidly.
Commenting on the announcement, Michael Warren, LME chief technology officer said:
“The LMEsword project will bring control over a key application for which the LME have long-term enhancement ambitions. Kynetix Technology Group were selected both for their excellent track record in our sector and their demonstration of a deep understanding of the specifics of the LME’s management of warrants. We are delighted to appoint them and look forward to a successful project.”
About LMEsword
The LMEsword system will be developed, managed and operated directly by the LME as part of a strategic decision to bring control of core systems in-house. The current SWORD system has served the market well for 10 years but a more flexible and modern system is required to react to new product launches and changes to existing contracts.
The development of LMEsword will occur in two stages. The first stage will be to build a new system which, in the most part, replicates the functionality of the existing SWORD system. The second stage will be to enhance the functionality of LMEsword in line with the requirements of the LME membership. The core functions of the SWORD system and the existing depository arrangements will remain unchanged.
