London Metal Exchange

About London Metal Exchange

Futures exchange in London, England

The London Metal Exchange (LME) is a futures and forwards exchange in the City of London with the world's largest market in standardised forward contracts, futures contracts and options on base metals such as copper, aluminium, zinc and nickel; it also offers contracts on ferrous and precious metals and allows cash trading, providing hedging, worldwide reference pricing and the option of physical delivery to settle contracts. Its daily prices set the benchmark at which copper and aluminium are priced around the world, and since 2012 it has been owned by Hong Kong Exchanges and Clearing. The exchange was founded in 1877 above a hat shop in Lombard Street, with roots in the metal traders who met in the Jerusalem Coffee House in the 18th century and drew a circle in chalk on the floor to call out their prices, the origin of "the Ring", the open-outcry trading system in which dealers sit on red benches in a circle and shout bids in five-minute sessions for each metal; according to Wikivoyage it is the last financial market in London that still retains open-outcry trading. The exchange is now housed in Finsbury Square on the edge of the City. It is not an open tourist attraction, but it is a significant stop for anyone interested in London's financial history, and professional and student groups can arrange visits to see the Ring through the exchange.

Where:

London, United Kingdom