LME volume down 85% on reopening day

Back in action: The iconic trading floor of LME reopened this week after dealers lobbied the exchange not to push ahead with a plan to switch permanently to fully electronic pricing. — Bloomberg

LONDON: Volumes on the London Metal Exchange’s (LME) open-outcry floor dropped 85% from pre-pandemic levels on traders’ first day back in “the Ring,” pointing to an even sharper contraction than some had predicted and reinforcing concerns that it may not stay open for long.

The iconic trading floor reopened this week after dealers lobbied the LME not to push ahead with a plan to switch permanently to fully electronic pricing. However, the restart came with a compromise that reduced the floor traders’ role in setting daily prices.