Cinnober’s clearing technology wins the technical battle at LME
Cinnober and TRADExpress RealTime Clearing selected in competition with 20 technology vendors
The London Metal Exchange (LME) has today announced the appointment of Cinnober as LME’s technology provider for their new clearinghouse, LME Clear.
In December 2011, following an extensive feasibility study, the LME announced that the exchange had taken the decision to pursue self-clearing. The initial phase of the implementation program has included a tender process with more than 20 technology providers. Selecting the right one has involved a thorough process including a design study and hands-on activities covering both functional and non-functional areas.
“In today’s clearing environment, regulatory, market and client demands emphasize the need for high performance systems, in terms of resilience, processing ability and the move to real time risk management,” said Trevor Spanner, MD of post trade services at the LME. “We are pleased and excited to have a technology partner who shares our commitment to delivering this capability.”
Cinnober will supply its TRADExpress RealTime Clearing system, including extreme and innovative capabilities within clearing, real time risk management and treasury functionality. The system also has the capability to clear external exchange markets as well as OTC markets.
There is a long and well-established relationship between the leading trading and clearing technology provider Cinnober and the London Metal Exchange. Cinnober has delivered five systems to the LME over the past decade, including the electronic trading platform.
“We’re excited to continue and deepen our 10-year relationship with the LME and take part in this great initiative while building a top-modern world-class leading clearinghouse from scratch,” says Javier Tordable, CEO of Cinnober. “There is a global interest for replacing old legacy technology with somewhat of a paradigm shift, where Cinnober is extremely well positioned. One proof is that this is the fourth major clearing system we’re delivering within a year.”
Cinnober’s technology lab, which was recently acquired, is building the next-generation fee and report engine within TRADExpress RealTime Clearing system, which will be a top-level engine with world-leading performance and usability.
Cinnober is a major global supplier of mission-critical solutions and services within trading, clearing and surveillance to leading trading and clearing venues. Customers include major trading and clearing venues in Europe and North America such as Alpha Exchange, Chicago Board Options Exchange, Deutsche Börse, London Metal Exchange and NYSE Liffe. In the past year Cinnober has increased its global presence while signing new contracts with emerging markets and with players such as BMF&FBOVESPA in Brazil as well as the Stock Exchange of Thailand, the Qatar Exchange, and DGCX.
For further information, please contact:
Head of Corporate Communications
Cinnober Financial Technology
Tel. +46-(0)73 403 12 39
Head of Business Development
London Metal Exchange
Tel. +44-(0)207 264 1735
London Metal Exchange
Tel. +44-(0)207 264 5538
About Cinnober Financial Technology
Cinnober provides mission-critical solutions and services to leading trading and clearing venues. Cinnober’s solutions are based on the TRADExpress™ Platform incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance. Cinnober’s customers include Alpha Exchange, Borsa Italiana, BM&FBOVESPA, Burgundy, Chicago Board Options Exchange, Deutsche Börse, Eurex, Hong Kong Mercantile Exchange, London Metal Exchange, Markit BOAT, NYSE Liffe, Stock Exchange of Thailand and Quadriserv. For additional information, please visit www.cinnober.com
About the London Metal Exchange
The London Metal Exchange is the world centre for industrial metals trading. More than 80% of global non-ferrous metals business is conducted on our three trading platforms: LMEselect (electronic), the Ring (open outcry) and the 24-hour telephone market. The world’s metal community uses the LME to trade futures, options, and our latest contract, LMEswaps, to hedge against adverse price movements – prices which are discovered on our markets and used as the global benchmark. Participants can trade aluminium, copper, tin, nickel, zinc, lead, molybdenum, cobalt, steel billet and two regional aluminium alloy contracts. In 2011, 146.6 million lots were traded on the LME, the equivalent of 3.5 billion tonnes and $15.4 trillion in notional value. At the close of the year, 7 million tonnes of material were held on LME warrant in 734 storage facilities across 37 locations internationally. http://www.lme.com/