After 144 years, the London Metal Exchange is set to close its trading floor forever. Known as “The Ring”, this is where traders set international prices for commodities such as copper, iron, steel, gold and silver.
ring Was initially closed Causes of COVID-19 epidemic in 2020. This was not very consistent with social equilibrium measures, just naturally, with traders squirming in one place, crowding around phones, and shouting out prices and trades hoarsely. After months of closure, it was announced that it would not be reopened and instead, future business would be in the digital realm.
An electronic trading system was announced, which LME says will also increase transparency and trading volume. But some experienced traders fear that it may run into initial problems that will affect markets.
How did LME get started?
The LME began in the 19th century and was nothing more than a circle drawn in sawdust at a coffee shop in central London. It was formally established in 1877 and has evolved over the years to become the world’s central site for determining the price of precious and other metals. But since then the society has evolved considerably and now, the online world is demanding that service providers, sectors and business centers move with the times.
The CEO LME, Matthew Chamberlain Said this is LME’s move over time. While face-to-face business may have worked for 140 years, now things are very different. It was also noted that, during the epidemic, there was a dramatic increase in the trading volume in the online sector. Thus providing a valid argument in favor of those supporting the innings.
Increase in traders
Overall, 2020 saw a large increase in the number of traders investing in foreign exchange, stock markets and commodities. This was driven, in part, by smartphone usage and better Internet connections.
But, furthermore, this was due to increasing volatility in the world markets. As the economy grew with epidemics, lockouts and economic decline, prices increased wildly. This presented amateur and professional traders many opportunities to take advantage of the movements to their advantage.
Digitalization effect
Modern technology has facilitated business growth in many ways. Apart from better and faster mobile and internet connections, many other technologies have made the process a lot easier. For example, some sites offer Foreign exchange practice account Where traders can invest with virtual money and execute parts of their strategy. This allows them to gain experience and experiment with various trading tricks without any risk. Once they gain confidence, it is very easy to switch to real money.
Additionally, the implementation of AI in the form of robot trading means that traders no longer have to sit in front of the phone, or screen, all day every day. Techniques such as the Museo, an intensive learning AI algorithm can also potentially revolutionize markets through its consumption and processing of raw data.
With the move to LME and more traders turning to online platforms to invest and trade, it seems that the days of the BRICS-and-mortar stock exchanges and foreign exchanges may be numbered. With increased digitalization and the many benefits that innovative technology can bring, perhaps other trading Venues will soon follow suit
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