Cinnober wins LME clearing contract
16 July 2012 | 5269 views | 0
The London Metal Exchange (LME) has selected Cinnober, the Swedish software house, as the core technology provider for its new clearing house, LME Clear.
The LME first announced proposals to build its own clearing house in May last year, replacing the incumbent supplier LCH.Clearnet. Within a year, the 135-year old metals market had narrowed down its search to a straight shoot-out between Cinnober and Calypso.
Under the agreement, Cinnober will provide LME Clear with its Tradexpress RealTime Clearing system, with a scheduled go-live date of 2014. The contract includes support for real time risk management and clearing functionality for on-exchange and OTC markets.
Cinnober already supplies LMEselect, the Exchange's electronic trading system, as well as clearing services to other markets including Dubai, Thailand, Brazil and the USA.
The LME is in the process of sealing a £1.39 billion takeover offer by Hong Kong Exchange & Clearing, which has has expressed its support for the development of the new LME Clear system.