‘Itâs the end of a very long era and a very sad day.’
By Mark Burton and Jack Farchy, Bloomberg
24 Jan 2021 00:21
The open outcry pit at the London Metal Exchange in London. Image: Bloomberg
Almost every day for the past 144 years, traders engaged in shouting matches at the London Metal Exchange to set the global price of copper and other vital commodities. Now, just as the metals industry gears up for a global boom, one of its most iconic scenes may never return.
The trading floor known as âthe Ringâ fell silent last year, as Covid-19 spread through the city of London. At one of the last open-outcry trading venues in the world, the raised voices, shared telephones and physical jostling among LME floor dealers made for a social-distancing nightmare.
The City s last open outcry trading ring - at the London Metal Exchange (LME) - could close after 144 years.
The site where traders shout at each other across the floor to set the world s metal prices has been shut since Covid struck in March.
But bosses at the LME now believe it is the right time to permanently close the open outcry structure - known simply as The Ring .
While closed due to the pandemic, the Finsbury Park-based exchange has modernised trading to keep in line with social distancing measures.
Under the plans the LME will move away from open outcry trading and towards an electronic system - like those used in other industries such as share trading.