Nasdaq OMX Starts LME Trade Monitoring for Broker Compliance

Nasdaq OMX Group Inc., the second-largest U.S. equity exchange operator, said it is offering brokers a monitoring service for London Metal Exchange trading to help them comply with regulations.

Two broker-dealers including Newedge Group SA are signed up to the so-called SMARTS Broker market surveillance, which covers LME trading in the ring, on the phone and electronically, Nasdaq said in an e-mailed statement today.

“We’ve seen a lot of interest from our customers in relation to LME markets and commodity markets generally,” Paul McKeown, vice president of market technology at Nasdaq OMX in New York, said by phone Dec. 14. “This service will be focused and targeted toward anyone who’s trading on the LME at this point in time, who needs to conduct and carry out trade compliance.”

Brokers will be able to monitor, identify and flag trading activity across the three LME trading platforms, according to Nasdaq. “Commodities continue to become an area where greater compliance and regulatory focus is required,” McKeown said in the statement.

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