London Metal Exchange
While at her big sister, the London Stock Exchange, primarily in stocks are traded, including the London Metal Exchange ( English: London Metal Exchange, also called LME), the market for spot transactions and forward transactions and other base metals. This makes it one, next to the metal exchanges in Singapore ( SIMEX ) and New York (COMEX on the New York Mercantile Exchange), the world's largest metal trading centers. The Exchange determined daily global reference or spot rates for metals, offers hedging transactions and also enables connected with the trade, physical interference.
History
The responsible trading company London Metal Market and Exchange Company was founded in 1877. However, there are roots back to the year 1571 and the opening of the Royal Exchange.
Was first only traded copper, lead and zinc as soon came on the market, even if they are officially traded only since 1920. During the Second World War and until 1952 the LME was closed. The trade has been extended out on aluminum ( 1978), nickel (1979) and aluminum alloys (1992). Other base metals are traded through the LME since 2000. The total trade volume is estimated at about 2,000 billion dollars annually.
Takeover by the Hong Kong Stock Exchange
On 15 June 2012, the Hong Kong Exchanges and Clearing announced the acquisition of the LME for the equivalent of around 1.7 billion euros. The acquisition is expected to close before year end.
Trading on the LME
Although there is a continuous trading by the so-called London Clearing House, but a good part of the trade is still carried out by exclamations or floor trading by a broker in an open ring. There are two trade rounds, one in the morning, one in the afternoon. Each of the eight groups of metals is traded in two blocks each having a five-minute call ( the last sessions from 11:40 bis 13:15 clock clock and 15:10 clock bis 16:35 clock, each block containing a ten-minute break ). The second trading block in the morning provides the basis for determining the daily official metal trading price. According to the official trading blocks are another fifteen minutes for the trade on the open market (futures, options, TAPOs ( Traded Average Price Options, a special Asian option) ) are available.
Only twelve brokerage firms have an exclusive authorization to act in that ring. They are considered as intermediary or broker for about 100 other companies, which act indirectly on the LME, in Germany a person includes, for example, the Wieland -Werke in Ulm or Südkupfer in Wolfschlugen.
Contrary to popular belief precious metals such as gold or silver are not traded on the LME, but rather on the London Bullion Market or on the New York Mercantile Exchange (NYMEX ). The price determination of platinum and palladium will, however, take place at the London Platinum and Palladium Market.