LME Completes Member Consultation On Proposals To Focus Plastics Trading On LME Select And Telephone Market - Under New Proposals, LME Plastics Contracts Would Only Be Traded On Electronic Platform, LME Select, And On Telephone Market - Not In The Ring

The London Metal Exchange (LME), the world’s premier exchange for base metals, steel billet and plastics, has completed a consultation with members on proposals to change the trading platforms supporting LME plastics contracts.

Under the proposals, the Exchange’s plastics futures for linear low density polyethylene and polypropylene would be traded solely on the Exchange’s electronic platform, LME Select, and on the inter-broker telephone market. Trading in the open outcry Ring would likely cease in February 2010.

Martin Abbott, Chief Executive of the London Metal Exchange comments: “Trading in the LME plastics contracts has been concentrated on LMESelect and the telephone markets. The decision to focus liquidity in these trading venues is a reflection of the way in which the industry trades.”

Proposals and member responses are currently being reviewed by the LME Executive Committee and will be put to the Board.