Case study

London Metal Exchange

Implementing an electronic trading platform

The London Metal Exchange (LME), established in 1877 and a cornerstone of commodity derivatives trading, is one of the most complex of its kind. The global reference for pricing of non-ferrous metals, the LME trades about 7,000 types of futures and options contracts. Until now, trading has been possible only via open outcry in the 'ring' or via a 24-hour telephone market.

The LME decided that, to secure its pre-eminent position in the market, it would need electronic screen based trading to complement the existing open outcry and telephone access. PA Consulting Group, with extensive experience designing and implementing exchange-trading platforms, was selected to work with the LME to reach this goal. Twelve months later the LME had a successful electronic exchange.