Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Hong Kong Exchanges and Clearing Limited
  6. News
  7. Summary
    388   HK0388045442

HONG KONG EXCHANGES AND CLEARING LIMITED

(388)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

London Metal Exchange to decide fate of iconic open-outcry 'ring'

06/07/2021 | 07:43pm EDT
FILE PHOTO: Traders work on the floor of the London Metal Exchange, in London

LONDON (Reuters) - The London Metal Exchange will tell its members on Tuesday whether its iconic open outcry floor is to close for good, cementing the switch to electronic trading, a move strongly opposed by many of the exchange's users.

The floor was closed in March 2020 for the first time since World War II to allow for the social distancing needed to deal with COVID-19, silencing its red ring of seats and accompanying theatre of arcane hand signals and frenzied shouting by traders.

In January, the world's oldest and biggest marketplace for industrial metals launched a consultation on making the closure of Europe's last open-outcry floor permanent, arguing that the forced migration to digital trading had been a success.

In its consultation paper, the exchange said an analysis of the trading data showed volumes on its electronic trading system between June 12 and Dec. 9, 2020 were significantly higher than ring volumes between Sept. 23, 2019 and March 20, 2020.

"That's comparing apples with pears," one head of a metals brokerage said, referring to the different time periods.

Brokers have said the data does not take into account electronic trading carried out alongside activity in the ring before its closure.

Commodities brokers Sucden Financial and StoneX Financial said the data the exchange used to support its plan to shut the floor for good exaggerated the increase in the use of electronic platforms during coronavirus lockdowns.

Many of the exchange's floor members have experienced a significant trading volume drop for industrial metals including copper, aluminium, zinc, lead, tin and nickel since the ring closed.

The LME received 192 responses to its consultation, an unprecedented number. Sources at metal trading firms say the decision on closing the floor or ring was due to be announced at the end of April, but that it was delayed for unknown reasons.

"When they launched the consultation, I put the chances of the ring closing at 90%," a senior executive at a metals trading firm said. "There seems to have been a mood change - I think the chances are now 50:50."

LME trading fees fell 17% to $263 million in the first quarter of this year compared with the same period of 2020, a results update from parent Hong Kong Exchanges and Clearing (HKEx) showed.

"If they re-open the ring and volumes rise, then they can say they made the right decision. If volumes don't go up, they can still close it," the senior executive said. "The ring is already there. It doesn't cost them anything."

(Reporting by Pratima Desai; Editing by Veronica Brown and Jan Harvey)

By Pratima Desai


ę Reuters 2021
All news about HONG KONG EXCHANGES AND CLEARING LIMITED
07/21HONG KONG EXCHANGES AND CLEARING : Mandatory Climate Disclosures, Carbon Markets..
AQ
07/20MARKET CHATTER : HKEX Exploring Ways to Keep Market Open During Inclement Weathe..
MT
07/20HONG KONG EXCHANGES AND CLEARING : Britain proposes accountability rules for mar..
RE
07/19HONG KONG EXCHANGES AND CLEARING : LME launches six new contracts, including lit..
RE
07/16Hong Kong shares post weekly gain; report on cybersecurity review waiver lift..
RE
07/16HONG KONG EXCHANGES AND CLEARING : Cross-Agency Steering Group announces next st..
AQ
07/15Hong Kong IPOs Planned to Be Exempted From China's Cybersecurity Reviews, Blo..
DJ
07/14HONG KONG EXCHANGES AND CLEARING : Key Implications Of New Hong Kong IPO Settlem..
AQ
07/08U.S. IPO market a danger zone for Chinese firms after Beijing crackdown
RE
07/08Hong Kong Exchanges and Clearing Limited Announces Board Appointments
CI
More news
Financials
Sales 2021 23 430 M 3 015 M 3 015 M
Net income 2021 14 857 M 1 912 M 1 912 M
Net cash 2021 39 960 M 5 142 M 5 142 M
P/E ratio 2021 42,5x
Yield 2021 2,05%
Capitalization 633 B 81 435 M 81 441 M
EV / Sales 2021 25,3x
EV / Sales 2022 21,1x
Nbr of Employees 2 204
Free-Float 94,0%
Chart HONG KONG EXCHANGES AND CLEARING LIMITED
Duration : Period :
Hong Kong Exchanges and Clearing Limited Technical Analysis Chart | 388 | HK0388045442 | MarketScreener
Technical analysis trends HONG KONG EXCHANGES AND CLEARING LIMITED
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Last Close Price 500,00 HKD
Average target price 539,89 HKD
Spread / Average Target 7,98%
EPS Revisions
Managers and Directors
Alejandro Nicolas Aguzin Chief Executive Officer & Director
Romnesh Lamba Co-President
Chi Kin Tai Co-President, COO & Executive Director
Bik Yun Lau Group Chief Financial Officer
May Lung Cha Non-Executive Chairman
Sector and Competitors