LME sticks to plan to split pricing; only official prices will return to ring

The London Metal Exchange will go ahead with its proposal to move official prices back to the open-outcry trading ring, but closing prices will be determined electronically via LMESelect, it announced on Monday August 9.

The exchange has published the outcome of its consultation on price determination, which was begun in June. The consultation paper only received 12 responses.
By comparison, the original discussion paper published in January, which included the proposal to permanently close the open-outcry ring, received 192 responses.
"The LME continues to believe that the official prices proposal represents the optimal solution for the market as a whole, by respecting the specific preferences of the physical market for ring-discovered prices," a notice to exchange members said.

"This ensures that the LME continues to serve the physical market most effectively, and maintains the linkage between the physical market and LME contracts, which...

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