London Metal Exchange takes plastics off trading floor

The London Metal Exchange (LME) is taking plastics off the trading floor at the start of 2010 with trading to continue by telephone and through the exchange’s online system called LMESelect.

“Trading in the LME plastics contracts has been concentrated on LMESelect and the telephone markets,” said Martin Abbott, LME chief executive. “The decision to focus liquidity in these trading venues is a reflection of the way in which the industry trades.”

According to an LME statement, polypropylene (PP) and linear low density polyethylene (LLDPE) futures trading in its open outcry Ring would likely cease in February 2010.

The move follows an LME consultation with its broker members to discuss the platforms they use for trading plastics.

LME launched the world’s first futures contracts for plastics, involving PP and LLDPE, in 2005. The introduction of regional plastics contracts came in 2007.

Established over 130 years ago in The City of London, the LME is the world’s premier non-ferrous metals market, offering futures and options contracts for aluminium, copper, nickel, tin, zinc and lead plus two regional aluminium alloy contracts