The London Metal Exchange (LME) has introduced Kynetix Technology Group, a specialist software firm that provides custom solutions to the capital markets, investment banking and insurance sectors, as solution provider for the new LMEsword system. LMEsword is being developed in order to replace the existing SWORD system, currently operated and managed for the LME by Europe's leading clearing house LCH.Clearnet, for the creation, storage and transfer of LME warrants.
The LME is proposing, with the new system, to bring the operation and management of this key, strategic system in-house under direct Exchange control. The introduction of the new system will provide efficiencies and the ability to bring new products to the market more rapidly.
The LMEsword system will be developed, managed and operated directly by the LME as part of a strategic decision to bring control of core systems in-house. The current SWORD system has served the market well for ten years; however, LME has said that a more flexible and modern system is required to react to new product launches and changes to existing contracts.