Curiously enough, the 143-year old exchange that has survived two world wars and many other financial crises will have to close its trading floor due to the coronavirus outbreak. Against the backdrop of a splash in new coronavirus cases across the country, the government has re-imposed tough social distancing measures. For this reason, the exchange is unable to keep its floor, known as “Еhe Ring,” because of restrictions imposed on the maximum number of participants in mass events.
Importantly, the London Metals Exchange (LME) remained one of the few exchanges in the world where traders shouted buy and sell orders for metals. The ban on public events to combat the spread of the coronavirus pandemic left this trading platform on the verge of survival. The LME's most famous division is closed until at least 2021. The legendary trading floor, known as The Ring, was closed at the request of the authorities in March. Despite the popularity of online trading, the daily volume of transactions made on The Ring was estimated at $50 billion. Currently, there is a drastic decrease in the number of trades to 75% from the level notched at the beginning of March even though speculators can still make transactions via phone or online trading terminal. “It’s going to be a pretty unpleasant winter. It’s becoming clear that we’re not coming back for at least another six months — unless there’s some major breakthrough on instant testing or something of that nature,” LME Chief Executive Matthew Chamberlain said.
Founded in 1877, the LME might have probably remained as it is for long. However, the coronavirus has already changed the way people used to do business. Given that most of the restrictions are likely to remain in place until next year, the LME might stay closed for a long time.
