LME Signs up Cinnober for Clearing

The London Metal Exchange (LME) has 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 Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term," 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 Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term.

"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.

LCH Clear has recently launched Forex Clear a brand new solution over coming counterparty risk in FX products.