Former London Metal Exchange boss considers launching rival

 
William Turvill
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The London Metal Exchange was founded in 1877 (Source: Getty)

The former head of the London Metal Exchange (LME) is considering launching a new London-based metals trading platform.

Martin Abbott is in talks with trading houses and brokers over the potential move to challenge the LME.

Read more: Open outcry lives on at the London Metal Exchange

He left the LME in 2013 after the Hong Kong Exchanges and Clearing took over the company.

"There are a number of different options which are mentioned, some people talk about an OTC (over the counter) platform, others talk about a (full-blown) exchange and it’s really very early days," Abbott told Reuters.

Read more: Why the Baltic Exchange chose talks with Singapore Exchange over others

Talks among brokers started several months ago, he said.

"There is a sense maybe the traditional trade business takes the back seat in the way the exchanges are planning their futures," he added, apparently in reference to discontent among users about fees and other issues.

Malcolm Freeman, a director of UK broker Kingdom Futures, which uses the LME, told Reuters traders are “very willing to listen as they feel they have been abused by the system”.

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