How is London metal exchange one of the largest market options?

How is London metal exchange one of the largest market options?

London metal exchange was established officially in 1877 but the roots of it can be even found during the reign of Queen Elizabeth I at the Royal Exchange in London in 1571. LME has come very far and has evolved with time to be one of the major market options for traders interested in metals. In December 2012, the London metal exchange (lme) was acquired by Hong Kong’s Exchanges and Clearing limited. Today, the lme is an innovative, dynamic and modern global marketplace which is serving and helping metals companies from china to chile.

There are nine companies who enjoy exclusive rights to trade in the ring of lme. Though there are around 100 companies who are associated with the London metal exchange in total. LME is a common platform for all the consumers and producers of metals from around the world to get an exposure of global metal trading market.

LME is running with time, they have been launching various initiatives which support their trading business. Adoption of latest technology into the system of trading and forum discussion has benefitted lme. LME also has an electronic trading platform, which handles a majority portion of LME business. They offer trading via telephone, via electronic means and also by their traditional trading method of ring trading. Started with less amount of metals in their bag, now lme inventory covers nearly all non-ferrous metals (Aluminium, zinc, tin, copper, lead, NASAAC, Nickel, LMEX, LME mini, aluminum alloys and many more), ferrous metals (steel scrap and steel rebar), minor metals (Molybdenum and cobalt) and precious metals (LME silver, LME Platinum, LME Palladium, LME Gold etc.).

HOW THE LONDON METAL EXCHANGE WORKS from Steve Jackson, Designer on Vimeo.

Reasons for lme being one of the largest market options,

It is world’s premier non-ferrous metals market which offers futures and options for metals like copper, aluminum, and steel.

It provides a forum platform to discover prices for months ahead.

Perfect hedging- LME has revised its working procedure with the modernization. They have their own LME approved warehouses, which are helpful for physical delivery in many countries.
24 hours a day global operations
Usage of robust technology
Strongly regulated
London metal exchange has evolved from being an important trading hub of metals to world’s leading exchange for metals future and options.
In last decade, it has done a trading of worth $US40 trillion dollars.

Conclusion
Lme is solely responsible for deciding a price for metals and for its trading. These prices for various metals are decided by the members of the ring of London metal exchange. LME has been evolving at a very fast pace since they are delivering their service in the most modern, trustworthy and direct level as they can. They have developed their own application for going live while trading and for sharing the data through LMELive. Services such as LMELive (which has been developed on a JAVA platform) has introduced an outstanding convenience for the trader with the real time information and data of LME available on their screen even when they are thousands of miles far from their center in London.
Statistics for london metal exchange for the year 2016
157 million lots
3.5 billion tons
$10.3 trillion notional

You might also like More from author

Comments are closed.