London 01/02/2016 - There was a smooth start to open-outcry trading on the trading floor at the London Metal Exchange's (LME) new headquarters on Monday, as the world's largest non-ferrous metals market settled into its purpose-built new premises.
Business commenced as usual at 11.40 London time with the five-minute steel billet session - the first metal to actually trade was NASAAC (North American Special Aluminium Alloy). Here, broker AMT sold one 25-tonne lot to Marex at $1,725 per tonne. The AMT floor trader - Kim Woodthorpe - is one of a handful of veterans who have now traded on all the LME's four floors.
Although there had been some minor teething problems, there were no issues with business, traders said. There had been concerns that the necessary infrastructure systems, such as telephones, computers and electronic technology information screens would not be ready in time for trading to begin.
"It will take a bit of getting used to - doing the phone runs, going round and checking trades. But the important thing is that we have a floor," one trader said.
"It is a bit cramped as it is smaller than what we are used to. The upside is a smaller ring means that it is much more audible and you can hear what is happening on the far side much better," another trader said.
This is the fourth different location for the LME and its open-outcry trading floor - the last of its kind in Europe and one of a small shrinking handful globally. The LME spent 21 years at Leadenhall Street; from 1980 to 1994 it was based at Plantation House in Fenchurch Street; while prior to that from 1881 it was housed in buildings in Whittington Avenue in Leadenhall Market.
The morning open-outcry sessions, which ran from 11.40 to 13.15, are where the daily official prices are discovered. All the five-minute segments passed without incident or pitfalls.
"Once all the finishing touches are complete I am sure it will be fine, appearance-wise. In the busy rings, such as second-ring copper and aluminium when all the phones and systems are being used, there were no problems - and that is the main thing," a third trader said.
Editing by Mark Shaw)