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:

  • 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

Binary interface

A binary order entry interface will be introduced with the following benefits:

  • Based on HKEX Orion Central Gateway (OCG) binary trading interfaces
  • Additional functionality, such as mass quotes
  • Optionality in message construction will be reduced to ensure parity between participants
  • Available to all participants

GUI Interface

We are pleased to be partnering Trading Technologies to build a GUI for the new trading platform. It 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 either the new FIX 5.0, and/or binary interfaces
  • 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:

new trading platform high level timeline

 

No Date Description
1 31 Dec 19 FIX 5.0 specification issued
2 31 Jan 20 Migrate from LMEselectMD to LMEsource (all participants except market data vendors)
3 Q2 2020 Binary specification, new trading platform functional definition, LMEsource specification, and GUI details issued
4 Q4 2020 Member and vendor test environments available for initial connectivity testing
5 Q1 2021 Member and vendor testing service available
6 Q4 2021 Go live of new trading platform and updated LMEsource
7 Q4 2021 LMEselect de-commissioned. LMEselect MD de-commissioned

Contact us

For further information please get in touch.