TMX and LME Advance Market Infrastructure Modernization

TMX Group and the London Metal Exchange have announced major steps in their respective modernization efforts, targeting clearing technology and market structure reforms.

Both institutions are pushing forward with infrastructure upgrades and regulatory changes designed to enhance efficiency, resilience, and market accessibility.

TMX Completed Key Phase of Post-Trade Modernization

TMX Group, through its subsidiary The Canadian Depository for Securities Limited, has completed a key phase of its Post-Trade Modernization initiative. The upgrade involved replacing legacy systems for clearing, settlement, and depository services with a new platform powered by TCS BaNCS for Market Infrastructure. The updated system underpins new services such as the Canadian Collateral Management Service, launched in 2024.

John McKenzie, CEO of TMX Group, stated, “Post trade modernization represents a game-changer for Canada’s equities, fixed income and OTC clearinghouse and a key milestone in the evolution of TMX. The launch of the new platform advances our core technology capability and ultimately strengthens Canada’s ability to compete for global investment. TMX’s investment in clearing technology also delivers on our enterprise wide commitment to ensuring these critical systems are efficient, resilient and adaptive. Above all, we are grateful for the contribution of our stakeholders in helping to vault Canada’s markets to the front of the global pack.”

Kevin Sampson, President of CDS, added, “The successful completion of the complex PTM project is the culmination of a great deal of hard work by a dedicated team here across clearing and technology divisions, working in close collaboration with TCS, and our network of industry participants. I want to extend my sincere thanks to our team and to our valued stakeholders for stepping up to work alongside us to deliver a new, leading-edge solution to strengthen Canada’s capital markets ecosystem.”

London Metal Exchange Opened Consultation Period

In parallel, the London Metal Exchange is moving forward with changes outlined in its 2024 White Paper on Enhancing Liquidity. The exchange has opened a consultation period for a range of Phase 1 reforms to be implemented through 2026, following extensive engagement with over 150 stakeholders.

LME CEO Matthew Chamberlain commented, “We have been hugely grateful for the level of engagement with our proposals. We have listened carefully to these views and they have enabled us to refine different elements to better meet the needs of different sections of the market. We have also opted for a phased approach to introducing changes as we are conscious of the need to support participants in managing some of the operational complexities involved in this structural evolution. I am confident that, working with stakeholders, we have settled on a programme of change that will deliver a more modern structure, boosting transparency and price competition while protecting the physical market, for the benefit of all market participants.”

Phase 1 includes the introduction of block trade thresholds and crossing rules on LMEselect to encourage on-screen liquidity. Adjustments have been made to accommodate client needs, such as exemptions for guaranteed Closing Price orders and automated solutions to ease execution. Other changes include reducing fees for daily spread trades and extending the shortdated carry definition to support liquidity in daily dates.

LME Will Raise the Financial OTC Booking Fee for OTC Lookalike Trades

To discourage regulatory arbitrage, the LME will raise the Financial OTC Booking Fee for OTC lookalike trades rather than imposing immediate block-like rules. Additional measures include a liquidity provider program, enhancements to LMEselect such as tick size calibration, and rollout of trade-at-settlement functionality.

Phase 2 will focus on further transparency improvements. Plans include making risk transfer trades in the interoffice market visible on core market data feeds, subject to waivers, and publishing more data on OTC trades and open interest. Further LMEselect upgrades are also expected to support implied pricing and prevent self-execution.

The LME’s consultation is open until 13 June 2025, and the exchange has invited continued stakeholder feedback.

Both TMX and LME are moving in parallel toward structural enhancements that prioritize transparency, digital resilience, and alignment with evolving market requirements. While TMX centers its efforts on post-trade infrastructure, the LME is focused on reforming trading rules and data visibility to support both financial and physical market participants.