The former CEO of the London Metal Exchange has launched a digital trading platform for metals to compete with the 140-year-old incumbent LME, which is still dominant in terms of global price setting.
The platform, called Non-Ferrous Exchange Markets (NFEx), will run on a system designed by London-based startup Autilla, riding the disruptive Blockchain wave. NFEx is due to launch its new market for the trading of non-ferrous metals in the first quarter of 2018. It will be headed by a five-member team, including former LME CEO Martin Abbott.
NFEx states that it will increase cost-efficiency in the global metals markets. It will not replace or disturb current trading models but will be complementary to them. The contracts and trading dates on the platform will match established physical industry practice and trades will be cleared.
NFEx is negotiating with several companies to clear trading on the platform, but it could struggle to gain business from the 140-year old LME. Fondel is highly interested in developments in the global metals market. We will keep you updated about this topic.
Source: Metal Bulletin