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France’s third-largest bank will stop trading on the London Metal Exchange (LME) next week, dealing a major blow to the open-outcry trading floor.
Societe Generale’s exit on Tuesday will leave the LME ring, which sets global prices for metals such as aluminium, copper and nickel, with just seven members.
Other companies operating on the platform include Marex, Sigma Broking and GF Financial Markets (UK). The exchange, known for its lively atmosphere, could close permanently if it has fewer than six members.
Something to note: Société Générale will leave the LME Ring with only seven members
Société Générale will remain a clearing member.
Each metal is traded in five-minute sessions, which produce a daily cash settlement price.
It is then incorporated into physical supply contracts.
The LME, established in 1877, is the oldest metal exchange in the world.
It was purchased for £1.4 billion by Hong Kong Exchanges & Clearing Limited in 2012.
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