LONDON, Oct 25 (Reuters) - Brokerage Tullett Prebon said on Wednesday it would launch an electronic trading platform for members of the London Metal Exchange (LME) to execute carry trades that bridge contracts maturing on different dates.
Tullett said its platform, called tpMATCH, would open to LME category 1 and 2 members early next month and make it easier to trade carries in which one or both ends of the trade fall on a date with low liquidity.
“tpMATCH will help members to manage their broken-dated card risk by centralising liquidity, creating cost efficiencies and maximising volume through algorithmic matching technology,” said Tullett’s managing director of risk management Paul Ribbins.
The algorithm would match orders twice weekly, Tullett said.
“We have commitment from a number of traders at larger LME members.” said Gareth Hughes, a business development manager at Tullett Prebon.
Tullett, part of TP ICAP, the world’s largest voice broker, has operated tpMATCH since 2010 in other markets including foreign exchange. (Reporting by Peter Hobson; Editing by Mark Potter)