Will Europe's Last Live Exchange Floor Reopen After the Pandemic?

The London Metals Exchange (LME) has shifted to electronic trading due to the pandemic, closing its historic open outcry trading floor. The LME CEO discusses the challenges of reopening the floor, emphasizing the importance of government guidance and social distancing measures. While electronic trading has maintained market liquidity and order, it lacks the peripheral business opportunities of open outcry. The trading floor holds significant emotional and symbolic value, representing the history and function of metals markets and the broader London financial markets.

What major change did the London Metals Exchange undergo due to the pandemic?

• It increased the number of trading hours.

• It introduced new metals for trading.

• It shifted to electronic pricing.

• It expanded its trading floor.

What is a key concern about reopening the LME's trading floor?

• Inability to maintain social distancing.

• Lack of government support.

• Insufficient electronic trading systems.

• Decreased interest from traders.

How has electronic trading performed during the pandemic according to the LME CEO?

• It has maintained market liquidity and order.

• It has led to numerous complaints from users.

• It has replaced open outcry trading entirely.

• It has been completely ineffective.

What is a limitation of electronic trading mentioned in the transcript?

• It is not accessible to all traders.

• It does not drive as much peripheral business.

• It is more expensive than open outcry trading.

• It is slower than traditional methods.

Why is the LME's open outcry trading floor considered significant?

• It symbolizes the history of metals trading.

• It is the largest trading floor in Europe.

• It has the highest trading volume.

• It is the most technologically advanced.