LONDON, Aug. 9 (Reuters) – The London Metal Exchange (LME) confirmed on Monday that it plans to reopen its trading channel on September 6 and use public outcry for official prices, but switch to its system electronic business closing.
The exchange announced in June that it had abandoned proposals to close its auction room, the last such platform in Europe, but believed e-commerce was the future. Read more
The LME, the world’s oldest and largest market for industrial metals, at the time unveiled a hybrid plan to split the two most important trading windows between auction trading and electronic trading.
But because the splitting system was not originally proposed, the exchange had to hold a new consultation with members and stakeholders, the results of which were announced on Monday.
“We believe this shared pricing model is the best outcome for the market as a whole,” LME chief executive Matthew Chamberlain said in a statement.
The solution is for both small physical users who use official prices in their contracts and larger financial and physical users who focus more on closing prices, the LME said.
The prosecution was closed in March 2020 for the first time since World War II to allow the social distancing necessary to deal with COVID-19, silencing its red ring of seats and the scene of arcane hand signals and frenzied cries of the tradespeople.
In January, the LME launched a consultation process on closing its auction room, arguing that the forced migration to digital commerce was a success, but met strong opposition to the proposal from many. traditional participants.
The LME is owned by Hong Kong Exchanges and Clearing Ltd. (0388.HK)
Reporting by Eric Onstad; Editing by Susan Fenton
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