.jpg)
The London Metal Exchange (LME) is enhancing the procedures for establishing the Closing Prices on its open outcry trading floor, the Ring. The refinement is designed to increase the efficiency of the final trading session of the day (the afternoon ‘Kerb’) following a marked increase in activity during this period over the past five years.
The change will see the introduction of an additional bell to signal the end of carry trading one minute before the close of 3-month trading for each metal or group of metals.
“Over the past five years the volume traded during the afternoon Kerb session has more than doubled, resulting in an exceptionally busy close,” said Peter Childs, Head of Trading Operations and Price Discovery at the LME. “This refinement is designed to separate out the closes for carry trading and 3-month trading to bring greater focus and clarity to each close-out.”
This is the latest in a series of changes made to the price discovery process since 2011, and is a key part of the LME’s commitment to continue to optimise the price-discovery process on the Ring following the review of the Ring carried out in 2014.
The refinement is effective from 7 September 2015.
