18 January 2017
London Metal Exchange – A ringside view
Members of the Blytheweigh team where invited by the Natural Resources Forum to attend a talk and tour of the London Metal Exchange (“LME”).
The talk and tour began with a brief history of the LME, its origins and commodity contracts, and an explanation of physical and paper market. We then joined in an open discussion with analysts, investment bankers and industry professionals about the merits and challenges of producer hedging and the role of the LME in the physical markets. The talk concluded with a summary of the different roles and rules of the trading floor.
It was now time to experience the ringside itself. Looking down on to the circle, we got to experience the intensity of the closing session, watching the traders, clerks and registered clerks liaising fiercely, with the volume in the room growing as the final bell rang for each commodity, as each member firm competed to get the best price.
The trading floor at the LME