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LME launches EMIR trade reporting service powered by Cinnober

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12 February 2014

The London Metal Exchange (LME) today announces the launch of its new derivatives reporting service LMEwire. Behind the technology stands the exchange’s long-term supplier Cinnober.

The new solution will enable members to comply with a key trade reporting deadline under incoming European Market Infrastructure Regulation (EMIR). 

Earlier this week, Trevor Spanner, Chief Executive of LME Clear, was interviewed about the upcoming launch by the Financial News (subscription). Their report featured his comments on the launch process:

“It’s going really well. We've delivered the core code that we are using to manage the LMEwire process. It’s based on the same system code as the clearing system, so we have a high degree of confidence on its ability. That has been finished and we've done our internal testing and over the course of this week, running all the way up to the 12th, members are testing their process.”

On February 12, regulations require reporting historical positions, which LME will do on behalf of members, according to Spanner. Subsequent trades will have to be reported on the following trading day.  An additional obligation to report mark to market and collateral will come into effect in August. As these are associated with the members’ positions, all of LME’s preparatory work has been carried out in close cooperation with its members. 

Cinnober is the technology partner behind LMEwire, and is also building the technology for the exchange’s new clearing house, LME Clear, which Spanner commented on in the same interview:

“The technology is going to be — we think — the best on the street, very flexible, very performant, and the functionality is rich, so we think we should be able to leverage on that and to deliver better service.”

“This kind of synergy with a long-term customer, in which our agile TRADExpress platform can be adapted for multiple roles on an exchange, is a key factor for addressing the never-ending flow of regulatory changes,” says Veronica Augustsson, CEO of Cinnober. “LME is continuing on its impressive journey and we are proud of our close and fruitful cooperation with this well-respected exchange.”