new trading and market data Platforms
The LME will be launching a new trading platform and enhancing the existing LMEsource market data platform in the second half of 2021.
These changes will bring a number of functional enhancements, please see below for more details, and will require market participants to be prepared for the external impacts discussed below.
Changes for market participants
The new trading and enhanced market data platforms will deliver a number of changes and improvements including:
- Functional enhancements
- A new FIX interface
- A new trading GUI
- Replacement of the existing LMEselectMD market data feed with LMEsource
We've also put together some frequently asked questions for members and ISVs.
Functional Enhancements
The changes will deliver the following enhancements to the participant model and pre-trade risk management (PTRM):
- Self-service user management
- Kill switch
- Mandatory setting of PTRM limits
- Common PTRM checks for all participants
- Intra-day strategy and option series creation outside of order flow
- Increased implied routes
- Variable tick sizes
- Merging of order books
- Increased custom strategies
- Additional order types
- Additional order validation
- Request for Quote (RFQ)
- Mass order cancellation
- Mass quote
- Market maker protection
- Configurable order management
- Drop copy replay of execution reports
- Indicative opening price publication
- Self execution prevention (SEP)
Changes to the Fix interface
The existing FIX 4.4 order entry interface will be replaced with FIX 5.0 sp2 interface with the following benefits:
- The new order entry interface will be aligned with FIX principles
- Where possible the use of custom tags will be avoided
- The interface will provide easier setup and connection for all market participants
- Standard interface for all participants - no latency advantage
GUI Interface
The existing LME provided trading GUI will be replaced with a new GUI which will bring the following benefits:
- Browser based
- Available to both members and clients
- Increased global distribution
- Access to all LME products
Migration Approach
As always, the LME will work closely with participants for their migration preparation including:
- Regular communication updates
- Early visibility of technical specifications
- Six-month test window including dev/test, conformance and dress rehearsals
It is proposed that the migration will be phased, based on markets and segments.
The migration approach will not include any provision for backwards or forwards compatibility i.e. migrated markets are only available via the new interfaces. Conversely it will not be possible to use the new interfaces to access markets that have not migrated.
The migration will therefore require all parties to be ready on the agreed dates. These include;
- Upgrade all order entry interfaces from the current FIX 4.4 format to the new FIX 5.0 format
- Becoming familiar with the new exchange provided Trading GUI
- Upgrade all Market Data interfaces from the current LMEselectMD to LMEsource
High Level Timeline
The target go-live data is the second half of 2021 with the following key dates and milestones
- 1. End of 2019: functional, FIX, GUI and market design specifications issued
- 2. End of January 2020: member, ISV and market data specialists migration to LMEsource for LMEselect market data. See Notice:19/163 for more information
- 3a. H2 2020: new trading platform member and vendor test environments available
- 3b. H2 2020: new trading platform market data available via LMEsource
- 4a. H2 2021: go-live of new trading platform
- 4b H2 2021: decommissioning LMEselect and LMEselectMD
Useful links
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For further information please get in touch.