Autilla Builds Base Metal Platform With Past LME CEO Abbott

(Bloomberg) -- 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.

Fees collected from LME futures and options contracts fell 12 percent to HK$1.23 billion ($158 billion) in 2016, as average daily trading volumes dropped 8 percent, parent company Hong Kong Exchanges and Clearing Ltd. said this week.

To contact the reporters on this story: Eddie van der Walt in London at evanderwalt@bloomberg.net, Mark Burton in London at mburton51@bloomberg.net.

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Tony Barrett