Barclays quits LME open outcry trade
November 23 , 2012
Britain’s Barclays bank announced on Thursday it is to quit open outcry floor trading at the London Metal Exchange (LME).
The downgrade of its membership at the world's biggest marketplace for industrial metals comes in a bid to lower costs.
In addition, the move was spurred by lower commodities turnover for banks such as Barclays. So far this year, turnover for the 10 biggest investment banks has dropped 20 percent.
Barclays in particular suffered significant losses last year after it made misjudged bets in copper and aluminium.
In a statement, the LME said Barclays had changed its membership status to Category 2, which allows only electronic and telephone trading.
Category 1 enables members to take part in open outcry trading at the LME, which gives them greater visibility and immediacy but almost doubles costs compared to those just dealing electronically.