The London Metal Exchange (LME) is to introduce a new policy allowing clients of LME members to connect directly to the exchange’s electronic trading platform, LMEselect, for market data.
The change will be effective from 24 March 2014.
In response to user demand, the LME will enable market participants to connect to LMEselect directly to receive a data-only feed. Until now, clients have only been able to access data through members or independent software vendors (ISVs). The new policy is of particular interest to members’ clients pursuing an algorithmic trading strategy, as they can now trade with the benefit of lower-latency data access.
The move is expected to encourage greater participation by such clients on LMEselect, which the LME believes could contribute further volume and liquidity to the platform.
“The provision of data directly to LME member clients will allow market participants to deploy a broader range of trading strategies on LMEselect, adding liquidity to the orderbook to the benefit of all market users,” says Matthew Chamberlain, head of business development at the LME.
There will be no additional connection or distribution charges for LME member clients accessing the data directly.
Orders placed by clients would still be required to pass through approved ISVs or LME member infrastructure before connecting to LMEselect.