LME and Metalshub Offer Digital Spot Trading For Base Metals
The London Metal Exchange (LME) is pleased to announce its collaboration with Metalshub, a leading digital metals trading and price intelligence platform. In parallel with the LME’s existing derivative contracts and trading mechanisms, this joint initiative will establish a transparent, efficient and liquid spot trading platform and marketplace for base metals.
#Congratulations on the collaboration between @LME_news and @metals_hub! This joint initiative will provide greater market access to physical base #metals, including #sustainably produced metals like low carbon aluminium. https://t.co/IRjVUqGbLo https://t.co/G5RqcFQRPl
— HKEX 香港交易所 (@HKEXGroup) October 11, 2021
The initiative will complement the LME’s existing offering, and will expand the physical product suite available on Metalshub – which currently focuses on the steel industry – to encompass LME core base metals, as well as other products suited to spot trading, including sustainably produced metals such as low carbon aluminium.
Robin Martin, LME Head of Market Development, commented: “We are delighted to be working with Metalshub to develop and support the delivery of digital spot trading services to our global industrial user base. Physical metals trading needs are increasingly being met with digital solutions, which offer benefits such as transparency, efficiency and easily evidenced compliance with procurement requirements. As the global centre for industrial metals futures trading, the LME is well-positioned to work with the outstanding Metalshub management team, to help expand the Metalshub product base and develop its direct connectivity with the physical market.”
Frank Jackel, Co-Founder and Managing Director of Metalshub, commented: “This collaboration is extremely exciting as the LME and Metalshub share the vision that commodity markets will become increasingly digital and metal companies will continue to digitally transform their procurement and sales processes. Metalshub is already the leading global platform for steel raw materials and we are keen on working with the LME and expanding into LME metals. Combining our strengths and offering the future of metals trading through our cloud-based Metalshub platform is the first steps towards making our joint vision become reality.”
The spot trading initiative is central to the LME’s sustainability agenda, which aims to provide greater transparency and market access to sustainably produced metals, with Metalshub now able to offer a digital trading platform for such products. Collectively, the LME and Metalshub aim to support the metals industry in its efforts to decarbonise the economy, ensure responsible sourcing across supply chains and progress good corporate governance.
Georgina Hallett, LME Chief Sustainability Officer, commented: “Our collaboration with Metalshub enables us to begin facilitating buyers’ access to the physical metal that meets their specific sustainability criteria, including reliable pricing based on real transaction data. We look forward to working with Metalshub to bring ESG credentials to the forefront of trading and tendering practices.”
Metalshub already provides an array of ferroalloys as well as various base and minor metal products via its marketplace. Over the coming months, the LME will undertake focused market engagement with its industrial user groups globally in order to develop a suitable product pipeline, with new products such as low carbon aluminium expected to be made available in early 2022.
Mysteel will operate the venue which uses a private matching solution developed by TT.
Electronic trading during the pandemic has led to high volumes and more participants.
MiFID II has not increased the share of trading volume executed on-venue.
Hemp industry lacks the pricing data found in more established commodity markets.
Halting the 'disorder creep' commonly found on global trading IT estates.