London Metal Exchange

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LME Holdings Limited

logo
legal form Limited
founding 1877
Seat 10 Finsbury Square, London , UK
Branch Stock exchanges , finances
Website www.lme.com

While at her big sister, the London Börser ( English London Stock Exchange ), mainly shares traded, which includes London Metal Exchange ( English London Metal Exchange, also called LME), the market for spot transactions and forward transactions in base and other metals . This makes it, alongside the metal exchanges in Singapore (SIMEX) and New York (COMEX on the New York Mercantile Exchange ), one of the world's largest metal trading centers. The exchange determines global reference and spot prices for metals on a daily basis , offers hedge transactions and also enables the physical storage associated with trading .

history

The responsible stock exchange trading company London Metal Market and Exchange Company was founded in 1877. However, it has roots back to 1571 and the opening of the Royal Exchange .

At first only copper was traded, but lead and zinc soon came on the market, even if these have only been officially traded since 1920. During the Second World War and until 1954 the LME was closed. The trade was then expanded to aluminum (1978), nickel (1979) and aluminum alloys (1992). Other base metals have been traded through the LME since 2000. According to the company's own information, the trading volume was 14.6 trillion US dollars in 2013 , and in 2018 it rose to 15.7 trillion US dollars.

Acquisition by the Hong Kong Stock Exchange

On June 15, 2012, the Hong Kong Exchanges and Clearing announced the takeover of LME for the equivalent of around 1.7 billion euros. According to both companies, the takeover was completed on December 6, 2012.

Exchange trading on the LME

There is continuous trading through the so-called London Clearing House , but a good part of the trading is still carried out through call out or floor trading by brokers in an open ring. There are two trading rounds, one in the morning and one in the afternoon. Each of the eight metal groups is traded in two blocks, each with a five-minute call (sessions run from 11:40 a.m. to 1:15 p.m. and 2:55 p.m. to 4:15 p.m., each block includes a ten-minute break). The second trading block in the morning provides the basis for determining the daily official metal trading rate. After the official trading blocks, the closing prices are set in a 45-minute final block.

Nine brokerage companies are licensed to trade in this ring in 2019. By the end of 2012 there were twelve. They act as intermediaries or brokers for around 100 other companies that trade indirectly on the LME; in Germany, the latter include, for example, the Wieland-Werke in Ulm or Südkupfer in Wolfschlugen.

Contrary to popular belief, precious metals such as gold and silver are not traded on the LME, but rather on the London Bullion Market or the New York Mercantile Exchange (NYMEX). The price determination for platinum and palladium , on the other hand, takes place at the London Platinum and Palladium Market .

Web links

Individual evidence

  1. ↑ Offices. In: lme.com. London Metal Exchange, 2019, accessed September 12, 2019 (UK English).
  2. ↑ Richard North Edge: 130 years of the LME. (PDF; 1.87 MB) In: LME 130th Anniversary Supplement. Newsdesk Communications, 2007, archived from the original on October 31, 2014 ; Retrieved October 31, 2014 (UK English).
  3. ^ London Metal Exchange: About us. Archived from the original on August 14, 2014 ; Retrieved October 31, 2014 (UK English).
  4. ↑ About. Setting the global standard. In: lme.com. London Metal Exchange, 2019, accessed September 12, 2019 (UK English).
  5. ↑ Hong Kong Stock Exchange buys London Metal Exchange. In: de.reuters.com. Reuters , June 15, 2012, accessed September 12, 2019 .
  6. ↑ HKEx and LME announce completion of transaction. In: hkex.com.hk. HKEx , December 6, 2012, accessed on September 12, 2019 .
  7. ^ Trading Times and Dates. In: lme.com. London Metal Exchange, 2019, accessed September 12, 2019 (UK English).
  8. ↑ Category 1. In: lme.com. London Metal Exchange, 2019, accessed September 12, 2019 (UK English).
  9. ↑ Category 1 - Ring dealing. In: lme.com. London Metal Exchange, 2012, archived from the original on April 19, 2012 ; Retrieved September 12, 2019 (UK English).

Coordinates: 51 ° 31 ′ 16 ″  N , 0 ° 5 ′ 15 ″  W.