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The former chief executive of the London Metal Exchange has teamed up with technology startup Autilla to launch a base metals trading platform, in a move that could add pressure to the world’s primary metals trading bourse as it faces declining volumes.
The platform aims to capture business that has left the LME after the exchange hiked its fees in 2015, according to Mike Greenacre, chief executive of Autilla. Martin Abbott, who left the LME after it was sold to Hong Kong Exchanges and Clearing in 2012, is an adviser to the project, he said.
“Everybody sees the declining volumes on the LME, and that’s people stepping away from the LME not doing less business,” Mr Greenacre said. “It’s brokers keeping their business over-the-counter, and we see there’s definitely something for us there.”
The chief executive of the LME abruptly stepped down in January, a month after the exchange’s chief operating officer left. Last year it was forced to slash fees for one of its most popular trades after a backlash from disgruntled members. Volumes on the exchange fell by 8 per cent last year.