LME members hoping longer kerb trading will eliminate ‘chaos’
Oct 06, 2006 | 10:09 AM
| Josephine Mason
London Metal Exchange members say longer afternoon kerb trading, due to be introduced next month, could help resolve problems that have emerged in recent years that make trading conditions increasingly difficult and cause erratic price swings.
Trading in the afternoon kerb has become increasingly difficult because of the sheer volume and because traders seek to influence the closing prices by bidding out of line with the market, exchange members say.
"I have raised my concerns about establishing prices and the possible ability of moving prices out of line on occasions," the head of an LME ring dealer said. "Lengthening the kerbs and allowing the metals to close individually over 45 minutes will help and alleviate the chaotic conditions that can occur on occasions."....
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