Fulfilling new trade reporting regulatory requirements, the London Metal Exchange (LME) has recently launched the second phase of its derivatives reporting service, LMEwire.
The exchange’s long-term supplier Cinnober stands behind the technology, enabling members of the exchange to meet new requirements in an efficient and cost-effective manner, with a solution customized to the needs of the metals market.
The European Markets Infrastructure Regulation (EMIR) came into force on February 12, 2014. ETD and OTC trades are now required to be reported following execution/modification/early termination on the following business day (T+1). The LMEwire service has now been extended to also report mark to market, positions and collateral data on a daily basis, complying with expanded regulatory requirements.
“Trade reporting is mandated to provide visibility into the OTC markets and the industry has been struggling to keep up with new regulations,” says Veronica Augustsson, CEO of Cinnober. “Efficient solutions are required and we’re proud to be LME’s technology partner also within this field, which is obviously growing quickly in importance.”
Cinnober is also building the technology for the exchange’s new clearing house, LME Clear, which is scheduled for launch on September 22. LME Clear includes extensive and innovative capabilities for clearing, real-time risk management and treasury functionality of listed and OTC markets. Both LME Clear and LMEwire are fully based on Cinnober’s well-established and globally renowned TRADExpress technology.
“LME Clear is one of the most prominent clearing projects in the world – not least from a technology perspective,” Augustsson continues. “The long-term relationship between LME and Cinnober, in which our agile TRADExpress technology is adapted for multiple roles, is a key factor for addressing the flow of regulatory changes.”
Since its inception 15 years ago, Cinnober has established a world-leading position within financial technology for marketplaces and clearinghouses. Current customers also include other major global players with extremely high demands for reliability and performance, such as BM&FBOVESPA, Deutsche Börse, Dubai Gold & Commodities Exchange, Johannesburg Stock Exchange, MarkitSERV and the Stock Exchange of Thailand. Given the current regulatory climate, Cinnober’s customer set is naturally broadening to also include banks and brokers. A recent acquisition of BOAT Trade Reporting from Markit is considered a major strategic step in this long-term endeavor.