The London Metal Exchange (LME) is working with Colt Technology Services to launch LMEnet, a dedicated network that will provide market participants a fast, reliable and secure connection to the Exchange’s electronic systems, including LME Clear.
LMEnet will be underpinned by Colt’s dedicated trading network service, PrizmNet, and will support three tiers of connectivity options for LME users according to their performance and latency requirements. LMEnet also features Colt’s new service management tool, which enables users to monitor latency and bandwidth use with significantly increased granularity.
“In partnership with Colt, we are delighted to be able to offer LME market participants enhanced performance and availability in their connectivity to the Exchange. By switching to LMEnet, the LME community will benefit from reduced latency, increased resilience, and improved control over how they interact with our electronic systems,” said Robin Paine, Chief Technology Officer at the LME.
“We have invested a significant amount in technology over the past 12 months, with more than £30 million devoted to IT projects and systems development, excluding LME Clear.”
Colt is an established leader in delivering integrated network, data centre, voice and IT services. Its network services link the trading cities of Europe and Asia, and connect Colt’s 20 carrier neutral data centres.
“We are proud to announce that the LME has chosen our trading infrastructure service PrizmNet to connect their global members to LMEnet,” said Rakesh Bhasin, CEO, Colt Technology Services. Colt has delivered the infrastructure that underpins the Capital Markets sector for over 20 years. LME’s choice of Colt’s PrizmNet service recognises our continued commitment to delivering innovative and trusted managed network services that enable access to the global markets.”
The LME expects to move users to the new system within nine months of Colt’s technology being deployed and tested, with migration slots available from October 2014.
Notes for Editors
LMEnet provides the minimum service needed to access the LME’s trading, matching, clearing and market data services. Other service levels include LMEnet Premium, which will appeal to users with latency sensitive applications, and LMEnet Remote, which has been designed for small operations with one to two users.
LMEnet will run concurrently with the LME’s existing wide area network (WAN) until the migration is complete. To ease the process of moving to the new system, the LME will waive the instalment fee for users that move to LMEnet within six months of launch.
About the London Metal Exchange
The London Metal Exchange, a member of HKEx Group, is the world centre for industrial metals trading.
More than 80% of global non-ferrous metals business is conducted on our three trading platforms: LMEselect (electronic), the Ring (open outcry) and the 24-hour telephone market. The world’s metal community uses the LME to trade futures, options, and our latest contract, LMEswaps, to hedge against adverse price movements – prices which are discovered on our markets and used as the global reference.
Participants can trade aluminium, copper, tin, nickel, zinc, lead, molybdenum, cobalt, steel billet and two regional aluminium alloy contracts. In 2013, 171.1 million lots were traded on the LME, the equivalent of 4.0 billion tonnes and $14.6 trillion in notional value.
At the close of the year, 7.4 million tonnes of material was held on LME warrant in 732 storage facilities across 37 locations internationally.
Colt is the information delivery platform, enabling its customers to deliver, share, process and store their vital business information. An established leader in delivering integrated network, data centre, voice and IT services to major organisations, midsized businesses and wholesale customers worldwide. Colt operates in 22 European countries with a 46,000km European network and transatlantic network capacity. Colt has metropolitan area networks in 42 major European cities with direct fibre connections into 19,800 buildings and 20 carrier neutral Colt data centres.
In addition to its direct sales capability, Colt has four indirect channels to market: Agent, Franchise, Distributor and Wholesale which includes Carriers, Service Providers, VARs and Voice Resellers.
Colt is listed on the London Stock Exchange (COLT).
Colt, Paula Muezerie
DDI:+44 (0) 20 7947 1035
Mobile: +44 (0) 7932 321768
GreenTarget, Jeff Watt
DDI:+44 (0) 20 7324 5482
Mobile: +44 (0) 7515 586503
LME, Kathy Alys
DDI: +44 (0)207 423 5803