The Fight to Save the LME Ring Begins as Traders Warn on Pricing
- LME has proposed permanently closing its open outcry floor
- German metals trade group VDM opposes closure of the Ring
Photographer: Luke MacGregor/Bloomberg
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The London Metal Exchange is facing broadening resistance to a plan to close its iconic open-outcry trading floor, with German traders and manufacturers joining some members to warn that closing “the Ring” would hurt pricing and volumes.
The LME suspended trading on the floor in March, and last month set out a plan to shutter it permanently. It’s inviting feedback on the proposal -- which would involve switching to a fully electronic pricing model -- ahead of a likely final decision in April.