But despite the possibility of losing the ring, the LME will still have a unique - and important - selling point, they said: its daily prompt date structure.
“On a personal front, it will be sad to see the trading floor shut, as someone who started their career in metals there in 1974, [but] it is reasonable to ask the question whether the trading floor serves an irreplaceable function - and sadly, the answer will most probably be no,” Malcolm Freeman, director at Kingdom Futures, said.
The LME announced in a discussion paper on Tuesday January 19 that it is proposing to move to electronic pricing in the long term
, and to close the 144-year-old open outcry ring.
“It is very sad, but I think the majority of the market were expecting this when [the ring] shut for lockdown [because...