London Metal Exchange’s famous ‘open outcry’ trading floor is saved and will reopen in September
The London Metal Exchange’s world-famous ‘open outcry’ trading floor is safe and will reopen in September.
In January this year, management said it was considering closing the ring, where traders shout out bids for commodities from a circle of red seats, permanently.
But the proposals were met with uproar, with brokers saying physical trading, using yells and hand signals, was the best way to work out accurate metals prices.
Proposals to close the London Metal Exchange’s world-famous ‘open outcry’ trading floor were met with uproar earlier this year
Almost 200 traders and industrial users submitted comments during a two-month consultation period.
It is one of the world’s last open-outcry markets and its origins trace back to a London coffee shop 140 years ago.
Dealers set daily benchmark prices for important industrial metals such as copper and zinc – and many have been worried that moving to an electronic model that allows for less flexibility could take away its edge.
The exchange is owned by HKEX, the owner of the Hong Kong Stock Exchange.
It banned daytime drinking in 2019, but still maintains its strict dress codes.