The LME has just announced it will reopen the open outcry trading floor
, which was temporarily closed due to Covid-19, on September 6.
Its plan, however, comes with a twist; some ring dealers say, a knife.
The official prices - which the global trade and industry use as the global reference for physical contracts - will continue to be determined in the ring, while the closing prices - used by LME Clear and LME members for calculating margins - are to be settled electronically using the LMESelect platform
This means ring dealers will send their teams down to the trading floor in London’s Finsbury Square in the morning, after which traders will head back to their respective offices and finish the afternoon at their desks.
All of this is predicated on a further consultation to determine whether the officials should also switch to being settled electronically. If that happens, then the ring...