Brokers have expressed concerns that London Metal Exchange
(LME)'s electronic trading platform Select could lack the
robustness and distribution to ensure the success of its soon
to be launched mini-sized metals contracts. Doubts were cast
over the platform's ability to handle an anticipated increase
in trading volume when the contracts are launched on 20
November, which would also bring it into competition with
contracts on rival New York Mercantile Exchange (Nymex)'s
Globex system, believed to have considerably superior
LME has been beta testing an upgraded fifth version of
Select, due to be rolled out on 4 November with increased
capacity and black box trading support. But despite
reassurances by the exchange that the new system would be
sufficiently improved to cope with extra traffic, traders were
doubtful, especially given that the current system has never
before experienced large volume.
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