🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Societe Generale leaves London Metal Exchange's open-outcry trading floor

Published 2024-08-23, 06:50 a/m
© Reuters. FILE PHOTO: A woman walks past protected windows of a branch of French bank Societe Generale on the Champs-Elysees avenue during the second round of the early French parliamentary election, in Paris, France, July 7, 2024. REUTERS/Guglielmo Mangiapane/File
SOGN
-
HG
-

By Eric Onstad

LONDON (Reuters) -Societe Generale International will drop its membership of the London Metal Exchange's open-outcry trading floor, the exchange said on Friday, raising questions about the future of the ring.

The world's oldest and largest market for industrial metals has steadily lost members over the years for the ring, the last open-outcry trading venue in Europe.

The SocGen move leaves seven members operating in the LME ring, down from about 30 at its peak in the late 1980s.

The LME ring features a circle of padded red, leather seats for traders who use arcane hand signals during five-minute bursts of intense trading in copper, aluminium, zinc, lead, nickel and tin.

Official LME prices, set on the trading floor daily, are used by metals producers and consumers as the global reference for their physical supply contracts.

Societe Generale (EPA:SOGN) will no longer be the ring-dealing member of the LME as of Aug. 27, moving from being a Category 1 member to Category 2, the LME said in a statement.

Category 2 members can trade for their own account and on behalf of clients using the LME electronic system and are members of the LME clearing house.

Societe Generale declined to comment. A source close to the bank said there would be no change in how it supports metals clients.

Two years ago, the LME lost ED&F Man Capital Markets as a ring-dealing member because it was acquired by fellow member Marex.

The LME decided in 2021 that the ring could be liquidated and official prices moved purely to the electronic system if the number of Category 1 members falls to fewer than six or their trading in the second ring falls to less than 75% of the last year's volumes.

© Reuters. FILE PHOTO: Traders work on the floor of the London Metal Exchange, in London, Britain September 27, 2018. REUTERS/Simon Dawson/File Photo

"The LME confirms that neither of these ring price liquidity event criteria have been met as a result of this announcement," the exchange said.

The LME declined further comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.