LONDON, June 6 (Reuters) - U.S. black box trading firm Jump Trading LLC has applied to join the London Metal Exchange, which has been seeking to boost liquidity from market makers and speculators.
Jump Trading wants to join the LME, the world’s biggest and oldest market for industrial metals, as a category 3 member, the LME said in a statement on Monday.
Third tier, or associate trade clearing members, can clear their own business but cannot issue client contracts or trade in the open outcry ring.
Jump Trading, based in Chicago, focuses on algorithmic trading, according to its LinkedIn page, which uses sophisticated computer programmes to direct high-speed trading strategies.
The firm, founded 15 years ago, also has offices in New York, London and Singapore.
The LME, hit by falling volumes, has been seeking to boost the liquidity of its “Third Wednesday” futures, aiming to attract financial investors who shy away from the complex LME date structure which appeals to physical clients such as miners and industrial consumers.
The LME is owned by Hong Kong Exchanges and Clearing Ltd. (Reporting by Eric Onstad; editing by David Clarke)