LME Plans to Close Open-Outcry Ring for First Time Since WW2
- Bourse sees risk of short-term market impact during changeover
- LME runs the last open-outcry trading venue in Europe
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The London Metal Exchange plans to temporarily suspend trading on its iconic open-outcry dealing floor for the first time since World War II as the U.K. tries to limit the spread of the coronavirus.
The LME’s trading ring -- the last of its kind in Europe -- plays a key role in setting global benchmark prices for base metals including copper and aluminum. The switch to electronic price determination is currently planned for March 23. While the LME has tested the alternative system, it said members shouldn’t underestimate the risk of short-term market impacts from the change.