The London Metal Exchange has agreed contract terms with Sweden's Cinnober Financial Technology to design and build a new electronic matching and registration system and take forward the Exchange's electronic trading platform, LME Select.
Both projects are expected to be completed and implemented in the fourth quarter of 2003. The initial order value of the contract is £2 million.
The systems will be custom developed using Cinnober’s Java-based Tradexpress platform.
Simon Heale, LME chief executive says: "We have identified matching and registration as a key business area where we can improve the efficiency and effectiveness of our service to our member firms."
He says that providing the service inhouse will do away with a great deal of complexity associated with the trade types used at the exchange.
"Back office systems, including reporting systems to the LME will become automatic and savings for members will be considerable," says Heale. "The systems will be highly flexible with users being able to use Internet technology in addition to fixed private lines."