The London Metal Exchange (LME) is the world centre for industrial metals trading where most of the world’s non-ferrous futures business is transacted. The physical metals industry, those who trade metal, make metal and make things out of metal, together with financial participants, use the LME to transfer or to take on price risk.
The prices discovered on the LME are universally recognised as the global standard for base metals pricing. Trading and pricing is underpinned by a global physical network of more than 550 warehouses across 34 locations across the USA, Europe and Asia. Further, the central counterparty for all LME clearing members, LME Clear provides a financial guarantee to every traded contract, acting as “the seller to every buyer and the buyer to every seller”.
With increasing regulation and the continuing need to “raise-the-bar” LME started to look for a centralised Risk and Compliance Management solution in order to link up data which had historically been siloed.
Having used a combination of Microsoft applications to capture and report on Risk and Compliance activities in the past, a more autonomous system was required moving forward, that would offer flexibility while bringing the siloed parts together and allowing business users to view the data both quickly and easily.
Following a rigorous scoping process, Xactium was selected as the supplier of choice, having offered a cloud-based solution which connected all of LME’s Risk and Compliance data together while also offering the benefit of improved report building plus an overall more informative, intelligent and insightful view of all risk and compliance information and processes.
Keith Bason, Head of ERM and Operational Risk at LME comments:
“The implementation of the Xactium GRC cloud-based solution will significantly enhance our oversight and management of the risk and compliance processes across the LME. For the first time we will be able to give our business users immediate access to the underlying data and it strengthen both the Risk and Compliance functions as we work closer together in the future.”
Andy Evans, Founder & MD of Xactium says:
“We are very pleased to be working with the London Metal Exchange, which is not only a world centre for trading, but has a long and venerable history as an exchange. We’re also pleased that the LME has selected Xactium with the key goal of developing a fully integrated approach to risk and compliance along with a focus on strong analytics and real-time reporting - one of the many strengths of our solution”.