Bidders for the LME may have to preserve its contract specifications and open outcry. But will that be possible in the face of competition from Asia?
FOWintelligence reported today that sources close to the
London Metal Exchange have said that the race to buy the
exchange will be run not only on price but also on showing
"empathy" to the existing structure of trading.
This injects and interesting dynamic into the bid. When the
IntercontinentalExchange bought out the International Petroleum
Exchange in 2001, a condition of the deal was the closure of
the pit. This was not achieved until 2005, in the meantime IPE
was effectively paying ICE to run the exchange without the deal
completing and money changing hands.
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