The London Metal Exchange expects participation in trading its contracts to rise if it pushes ahead with incentivizing its electronic platform, based on conversations it has had.
But its chief executive officer declined to specify by how much the exchange expects its volumes to increase, nor who the participants are, it added.
Addressing the issue during a panel discussion at the virtual Fastmarkets Copper Seminar, Matthew Chamberlain said the LME had centered its debate on permanently closing the open-outcry ring and pushing volumes to electronic platform LMESelect on the principle of democratization.
"We have had conversations with a number of participants in the market, who tell us that if we were able to make our pricing processes electronic on a longer-term basis, they would be willing to participate more. Now, obviously, I can't prove that until they come along," Chamberlain said.
"The...