The London Metal Exchange has received a significant rise in objections to its closing prices since trading on the LME Ring was halted in March 2020, new data released by the exchange on Tuesday March 2 shows.
The exchange has published new data surrounding the number of objections, the volume in the pricing process and the number of participants involved while the debate around a permanent shift to electronic trading continues.
This follows the release of a new discussion paper on January 19, which
proposed the permanent closure of the LME's open-outcry trading floor and the incentivization of greater liquidity on its electronic trading platform, LMESelect.
The exchange publishes provisional closing prices each day after the relevant closing price period for each metal, which Category 1, 2 and 4 members may submit objections to the LME in relation to. Prior to the suspension of ring trading, objections came 'almost exclusively' from Category 1 members, the LME said.
Data shows that the...