LORD COPPER: Which path will the LME take?

There is growing debate about the road the London Metal Exchange should take; for a large part of its life, it has been all things to all men, but that comfortable position is becoming increasingly difficult to hold.

For the first hundred and something years, it was dominated by trade interests – and that does not rule out speculators: the trade is quite able to speculate – who cherished the particular rolling three-month prompt date and all the possible manoeuvrings around that which had been the brainchild of those Victorian merchants who had founded the exchange to codify their trading activities.
Then, over roughly the past ten to 20 years, a different voice, that of the financial trading and investor/speculator community, has become increasingly heard. The sentiment there seems to be towards a much more straightforward market structure, replacing the rolling prompts with a flat monthly contract.

Right now, the new forces appear to...


Lord Copper

February 13, 2017

10:33 GMT