The London Metal Exchange (LME) has proposed the closure of Europe's last open outcry trading floor and switching to an electronic system owing to difficulties associated with the coronavirus pandemic.
The London Metal Exchange. Credit: HM Treasury / Flickr
The LME had previously temporarily closed its doors for the first time since World War 2 to adhere to social distancing guidelines early in the pandemic.
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Its permanent closure will be marked as the end of an era for one of the City of London's permanent fixtures but the proposal has been met with resistance with brokers.
Roughly $50 billion (€41.3 billion) in metals is traded on its floor every day, and it has been in operation for 144 years.
“A board meeting in April will consider the feedback and appropriate decisions will be made there. We will aim to publish something in the second quarter of this year,” LME Chief Executive Matthew Chamberlain told Reuters.
“The ring is a greatly treasured aspect of the LME’s rich 144-year history, and its closure is not a decision we...will take lightly."
Chamberlain added the change would allow the LME would allow for a broader range of participants and for them to boost transparency for prices of items traded.
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He added the possibility of the floor reopening should the virus subside before the transition, at the behest of the brokers.
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