Traders shout down LME’s plan to shut the Ring

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The London Metal Exchange has bowed to pressure from dealers and scrapped a proposal to permanently close its historic Ring trading floor.

The 144-year-old Ring is Europe’s last remaining open outcry market and is used to set prices for industrial metals. Its future came under threat in January when the exchange set out a plan to modernise the market by abandoning the Ring and switching to fully electronic trading.

The LME put the proposal to a consultation of the exchange’s members but there was an immediate backlash from some traders on the proposal. It announced that it would instead move to a hybrid model that would preserve the open outcry process for part of the market.

The Ring has been shut temporarily since March last