A new trading platform for base metals hopes to give the London Metal Exchange a run for its money. Autilla, Inc. has partnered with former LME chief Martin Abbot to develop the new platform in an effort at capturing trades taking place outside of the established market framework.
“Autilla, with Martin Abbott acting as adviser, has developed a platform for matching the growing OTC base metals volumes,” Autilla spokesman Simon Rostron told Bloomberg. “The platform is similar to the precious-metals platform developed for the London wholesale market.”
Some traders have been dissatisfied with the LME due to rising trading fees. The Exchange responded last summer by lowering certain fees, but according to Autilla CEO Mike Greenacre, the fees have already alienated a significant quantity of traders. According to Greenacre, Autilla is focusing on capturing that market, with the possibility of adding an external clearinghouse in the future.
A new trading platform has been in the works since at least June, when Abbott was first reported to be discussing the idea with high-profile LME traders.