London - Tullett Prebon, part of TP ICAP, the interdealer broker, has launched an electronic trading solution for members of the London Metal Exchange (LME) to help them manage so-called "broken-dated carries".
Broken-dated carries occur when a trader's risk is spread across multiple dates, making them time-consuming, risky and costly to settle. To help solve this problem, Tullett Prebon, which is a category 2 member of the LME, will roll out tpMATCH, its algorithmic matching system which helps traders manage portfolios of risk by simultaneously executing multiple transactions between sellers and buyers in markets including Rates and Foreign Exchange.
LME traders, working for one of the 41 category 1 and 2 members, can submit their orders and positions into the algorithm, which will apply its matching technology in twice weekly runs. Trades will be executed on a "name give up" basis between participants, meaning both sides of any trade will be aware of the other's identity. The service will be managed by staff with experience in the metals market and will work closely with the Tullett Prebon base metals desk.