Ex LME CEO to set up new metals trading platform for London
Former chief executive officer of the London Metal Exchange Martin Abbott is trying to set up an alternative metals-trading platform to existing venues.
Brokers are said to be unhappy with the exchange's new fees as well as the sense that the LME is moving away from its traditional metals trading roots.
The move, reports Bloomberg, follows months of talks with brokers and other concerned parties about the need to creating another trading platform, as the LME has become expensive for its current users.
Last year, the 139-year old exchange hiked trading fees by about 34% and it also added charges for using its data as it faces decreasing volumes and competition from CME Group Inc.
Abbott, who left the LME in 2013, said a study group is being formed to explore the potential for a new venue, and that anyone interested is welcome to join and fund research looking at various ways of developing such platform.
Hong Kong Exchanges and Clearing acquired the LME in 2012 for $1.4bn.