Quest for Cheaper Metals Trading Drives Talks to Start LME Rival
- Brokers and ex-LME CEO are reviewing options for new platform
- Talks are preliminary and may not result in alternative market
A trader uses telephones as he works from the trading floor of the open outcry pit at the London Metal Exchange (LME) in London.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
In the face of sliding volumes and tougher regulation, the London Metal Exchange may be getting a new challenge: more competition.
Martin Abbott, who orchestrated the LME’s sale to Hong Kong Exchanges & Clearing Ltd., is now leading a group of brokers to study alternatives to the exchange. Brokers on the exchange are concerned that trading has become too expensive and there is a “disconnect” between metal markets and users, Abbott said in an interview.