Britannia on Wednesday confirmed it has received approval for a category 4 (Cat 4) membership from the LME, allowing the firm to trade on the market on their own behalf or for clients but not clear transactions themselves. The move comes after the firm relinquished its clearing membership in 2022, to focus on the over-the-counter (OTC) market.

“The LME remains the world’s most important and preeminent trading venue for base metals, so we are very pleased to receive our Cat 4 membership,” Steve Pettitt, chief executive at Britannia said in a release. “Demand for metals trading at Britannia Global Markets has grown to such an extent that our clients will benefit hugely from this move.

“Being able to trade directly via the LME will greatly enhance our metals offering from several standpoints, including pricing, transparency and above all credibility.”

Britannia hired in November last year an experienced metals trader, who formerly worked for Triland Metals, ABN Amro and ADM, as the group's new head of metals. Neil Welsh rejoined the firm from Triland where he worked for 18 months, after three-and-a-half years at Britannia in LME trading and sales.

The broker also in February hired a former Morgan Stanley head of European futures sales, Alex Cooper, as a senior sales trader to focus on multi-asset sales.

The move comes after a bid by the LME to grow its on-screen presence, with a series of reforms aimed at increasing liquidity and launching a new electronic options market. The exchange published its ‘options roadmap’ in October, that goes alongside wider changes designed to leverage an upgrade of its LMEselect electronic platform.

“We are delighted that Britannia Global Markets will be joining the LME as a Category 4 member,” Jamie Turner, chief operating officer and head of trading at the LME said in a statement. “As well-established participants in the metals sector we look forward to them bringing additional liquidity to our market."

In August, options market-making giant Optiver joined the LME as an electronic, Category 4 member, in a major boost for the LME's options ambitions.