London Metal Exchange

The London Metal Exchange (LME) was established in 1571, making it one of the oldest commodity exchanges in the world. It is the only remaining physical commodity exchange in Europe.

In the second half of the 19th century, the burgeoning trade of metals futures in London led to the formation of the London Metals and Mining Company, now known as the LME. It initially operated above a hat shop in Lombard Court.

In 1869, the Suez Canal was opened, allowing cargo ships to pass between the Mediterranean and Red seas, significantly impacting the import and export of various commodities, including metals. The introduction of this canal reduced the delivery time of tin from Malaya to England to three months, aligning it with the delivery time of copper from Chile. This event led to the establishment of LME's system of daily prompt dates covering the three months ahead.

In 1877, the London Metal Exchange (LME) was established, becoming a crucial hub for the trading of metals internationally. LME plays a significant role in setting global metal prices and facilitating transactions for various metals, contributing to the development of the metal industry.

By 1882, the London Metals and Mining Company (LME) had grown quickly and was forced to move into the purpose-built Exchange in Whittington Avenue, where it would remain for nearly a hundred years.

In July 1914, the outbreak of World War I led to the temporary shutdown of the LME due to supply shortages of metals in Europe. The UK Government imposed controls on prices and distribution of steel, affecting the operations of the exchange.

Established in 1989, the London Metal Exchange pension scheme provides retirement benefits for its members. It is a significant aspect of the exchange's operations and financial planning.

In June 1996, Sumitomo Corp head trader Yasuo Hamanaka caused a crisis in the market by losing $2.6 billion on copper over a decade. This event highlighted the risks and volatility associated with metal trading.

In September 2009, a resolution to transition the London Metal Exchange (LME) to a two-board structure from one board did not receive the required 75 percent of votes for approval.

In April 2010, the LME announced the appointment of Brian Bender as the chairman of both LME Holdings and LME Limited boards, succeeding Donald Brydon.

In July 2010, the LME expanded its operations by opening its first office outside of London. This marked a significant milestone in the exchange's history.

In September 2010, the London Bullion Market Association (LBMA) and the LME announced their collaboration to gather data for the LBMA gold forward curve, with plans to distribute the information in early 2011.

In May 2011, the LME outlined its strategy to establish its clearing house, still in the feasibility stage, indicating that the current clearing entity, LCH.Clearnet, might not be the most suitable option.

By September 2011, the London Metal Exchange (LME) reported a surge in interest from potential buyers eyeing the exchange as an acquisition target. The LME announced plans to open a 'data room' for interested parties to review its financial information by early December.

In June 2012, the Hong Kong stock exchange agreed to acquire the 135-year-old London Metal Exchange (LME) for 1.4 billion pounds ($2.18 billion), marking a significant shift in the global industrial metals market.

In 2014, the LME imposed fines on traders from nine out of the 11 floors of its operations for standing around the Ring, including major names like JPMorgan and Société Générale. This disciplinary action was taken to maintain fairness and transparency in trading practices at the LME.

In 2019, the London Metal Exchange appointed Gay Huey Evans as its first female chair of the board. With over 30 years of experience in the financial sector, she expressed pride in her election and highlighted the importance of ethical supply chains in the metal industry.

The COVID-19 pandemic posed challenges for the London Metal Exchange (LME) like many other industries. However, with its long history, dating back to 1571, the LME is expected to adapt to provide its services to investors.

On March 1, 2021, the London Metal Exchange (LME) made a significant change by switching to digital-only warrants, which are documents representing entitlement to a specific lot of LME-approved metal.

The LME Index achieved its record peak of 5505.70 in March 2022.

Introduction of LME Cobalt contracts by Fastmarkets MB for trading.

According to Trading Economics global macro models and analysts expectations, the LME Index is projected to reach 4174.14 points by the end of this quarter and 4334.08 points in 12 months.

In 2024, The London Metal Exchange was acquired by HKEX, marking a significant development in the financial and commodities trading sector.