The London Metal Exchange will adapt its rule book to include new closure provisions for its open-outcry ring, Fastmarkets heard on Monday August 9. And the anonymous nature of responses to the recent pricing consultation means that the Ring's long-term prospects were still in doubt.
The exchange operates Europe's last open-outcry market trading venue, known as the Ring, where brokers make markets for base metals by shouting and signalling orders from a circle of red leather seats.
After the Covid-19 pandemic forced an abrupt shift to electronic trading, to allow the mandatory social distancing, the LME engaged in heated debate with its members about the long-term viability of such a venue.
The LME was pushing forward with its proposal to move closing prices permanently to electronic trading via LMESelect. It has also changed its rulebook to give itself the power to move official prices away from ring trading without having to consult its members.
To prevent this, six of the LME's nine Category 1 brokers will have to continue to commit to doing business on the ring.
And the total...