Autilla Builds Base Metal Platform With Past LME CEO AbbottBy and
Abbott will act as an adviser, firm says in emailed statement
Company hopes to attract ‘growing OTC base-metals volumes’
Financial technology firm Autilla Inc. has developed a trading platform for base metals, tying up with former London Metal Exchange chief Martin Abbott in a bid to grab the growing levels of volumes executed off market exchanges.
The platform would bring another way to trade base metals in London, which is dominated by the 139-year-old LME. Separately, Autilla is testing a gold-trading venue that’s part of a broader plan to increase openness in the London over-the-counter market, according to Chief Executive Officer Mike Greenacre.
“Autilla, with Martin Abbott acting as adviser, has developed a platform for matching the growing OTC base metals volumes,” Simon Rostron, a spokesman for Autilla, said by email. “The platform is similar to the precious-metals platform developed for the London wholesale market.”
The LME has faced mounting criticism from its members over the past year because of rising trading fees. The exchange reduced some fees in 2016 to try to revive volumes and repair relations. In June, Abbott said he was talking with brokers about creating a trading platform.
The higher fees have pushed more business off the exchange, Greenacre said in an interview in London on Wednesday. Autilla’s goal would be to attract this off-exchange business, with an external clearing house perhaps considered at a future date.