London Metal Exchange | Inside Europe's last physical trading floor

The London Metal Exchange (LME) is the world centre for the trade of industrial metals. Last year, $10.3 trillion worth of metals were exchanged at the LME. It is the last physical trading floor in Europe. Inside the Ring is like a theatre performance with its own actors, rules and language.

[@stevec00ps]

I worked there for 10 years in the IT team and my last project was building the entire IT infrastructure (screens, phones, cameras etc.) for that trading ring and the office floors :)

[@aleksk4151]

wow so awesome

[@AXEL450289]

How can I get one of the phone ? These are collector

[@stevec00ps]

@@AXEL450289 Try BT Global Financial Services - they're who I worked with when installing the ITS voice system and the "turrets" (the phones) they use. Otherwise check eBay and the like for "BT ITS Netrix"

[@AXEL450289]

Steve Cooper thanks a lot!! I will be looking for it 👍

[@scott1506]

god what a nightmare to wire that

[@pr4442]

I was trying to find a modern example of a competing complex adaptive environment following simple rules and this was perfect. Thanks.

[@paullangton-rogers2390]

I love the hand gestures, they have developed their own language to communicate trades visually and quickly across an open space in a noisey trading environment, just like used to happen in the old days on the stocks and futures trading floors.

[@cycklist]

How bizarre.

[@janssenmccormick7824]

Lemme get uhhhhhhhhhhhhhh tungsten

[@user-yb1cm4fd6h]

Very interesting video actually, thanks for this.

[@Londonistvids]

We're glad you enjoyed it :-)

[@whoisy.jxnnie6313]

cool

[@70AD-user45]

@@Londonistvids Is this where Nigel Farage worked?

[@gileswelham2619]

@@70AD-user45 Yes!

[@blauw67]

Hey, at the start of the video, every time the voice-over speaks, there is some buzz, I don't know if you can do anything about that?

[@dan_tr4pd00r]

Wearing headphones, the buzz is present for me any time the voice-over happens.

[@Tobberz]

Aha not just me then xD

[@varunsharma534]

I understand that this exercise is undertaken primarily to discover the spot prices for the commodities that then form the basis for all contracts based on those commodities.

[@PatchedThePipe]

So what exactly is going on? Are clients saying "I need X amount of tin.. get me the best deal" ? And the dealer then tries to do exactly that? And does that mean that number of stock is then imported/exported to client or is the client simply buying to resell and physical stock never Enters the process??

[@admiralbenbow5083]

Yes some of that. Most of the volume is for hedging however. Say a company buys/uses 10,000t per month of copper in its manufacturing process. In order to even out inevitable market price fluctuations over a period of say a year it will sell that same tonnage per month on the exchange in futures contracts. In this way it has the comfort of knowing what it will be paying for its copper far ahead.

[@videosuperhighway7655]

One day computer systems and network technology will reach a point that orders can be entered on a screen and trades transacted in real time.

[@OTDJANGO]

today, actually

[@UnitedMi]

gross

[@jayondrums9862]

They introduced that tech back in 2001 if I remember rightly but the LME is still going strong!

[@Sam-ht5dk]

I could hear a low frequency buzzing when the voiceover was on

[@borecz161]

1:22 What if we used 100% of our brains? :D

[@anderson49anders]

Most interesting and a clear explanation of workflow on the floor

[@mo05hy]

3:32 female in the ring...

[@veganryan]

2:58 no money for cordless phones.

[@jagman84]

Security. The conversations can all be recorded for future analysis, in the event of disputes.

[@a.w.abbasi]

Imagine if the batteries ran out halfway through a transaction in the last seconds... Wouldn't fare well

[@veganryan]

Perhaps, but I'm sure it's possible wirelessly. Maybe part of the reason is maintaining the theatrical nature of the place.

[@LuxFerre4242]

My guess would be that the wired phones allow for more clarity, especially with so many phones in close proximity. You'd need it to be exceptionally clear with all the noise and how important accurate information would be.

[@Londonistvids]

The cordless phones are actually designed to prevent the account executives from interacting directly with the dealers in the ring. They are supposed to communicate via the clerk. In practice, the account executives still attempt to speak directly with the dealers, pulling the phone wires as far as possible.

[@whangie1]

I can imagine many of these city types being interested in a cocaine, prostitutes, champagne and Porsche 911 exchange. They would have loved that back in like 1983.

[@Ralphyneil]

We are mate. Thank you for your kind insight.

[@70AD-user45]

Is this where Nigel Farage once worked?

[@jayondrums9862]

They did! 👍

[@billyhalliday9811]

How do u become a trader does anybody know or have advice ?

[@TheHutch000]

Great video very helpful thank you

[@linuxbot3000]

50Hz notch filter needed

[@lemagreengreen]

"Only 2% of the metal traded here is ever physically collected" - what? sorry I'm not sure I quite understand, what's the purpose of all this if not to trade?

[@erikapesantezcabrera3969]

Fascinating stuff!🤑🤑🤑🤑

[@MrLiquid323]

How are they talking via 2 phones at once?

[@SoCalFreelance]

Another anachronistic system that's soon going all digital.

[@TheClintonio]

There's an annoying buzz on your microphone when doing voice overs. It's distractingly low quality.

[@Modiford]

Shonky audio there. I expect better from Londonist.

[@whoisy.jxnnie6313]

there like arguing and a chaotic scene!!

[@hannesdhondt3096]

Amazing

[@mo05hy]

first guys...lets see how much metal is!!

[@mikehawk4856]

Wow that looks terrible why would anyone want to do that

[@kevinjoseph517]

FORMAL WEAR IN THE LME

[@airplaneplustrainguy8143]

Why Iron Lady (Margaret Thatcher) didn't broke this shit? (PS JUST A JOKE)

[@asishmohanty4124]

Rx London stock exchange 💱 euro 💶 rubel renimibi taka yen 💹 renimibi dollar 💵 pound 💷 Euro 💶 strategy execution and marketing finance leadership was outstanding leadership ! IIT MUMBAI IISC Bangalore , Boston Germany Mexico sheffield IPADE MIT US Harvard business school mentor CEO vice chancellor ! London stock exchange 💱 world 🌎 number one stock exchange stock exchange stock market bid gain. Market ! Marvelous experience with London stock exchange 💱 ! Leadership !

[@sammalone8362]

That's sooooo cooool xD

[@Londonistvids]

Glad you enjoyed.

[@m.e44]

I can do this from Robinhood

[@Mitarenje]

what about now? :D

[@DorothyMejia-u6y]

Geraldine Throughway

[@richardsuggs8108]

I like that.

[@longdatedoptionsleaps6112]

Jeez go have a look at the Chicago Pits at their peak in the late 1990s to early 2000s, up to 4,000 people total and the pits where insane and very physical… organised kaos reallly… this I’m afraid is not hectic and nothing compared to Chicago.

[@Tobberz]

Presenter has clearly never worn a suit before

[@Sabhail_ar_Alba]

Unfortunately, its the biggest dog of a stock market in the western world with practically no returns for the investor in comparison with the DJ index.

[@pejpm]

What?

[@adamdaniel8909]

What...?

[@afromanscarecrowproduction9170]

It is apparent that there is no effective regulatory control over dishonest trustees or their deceptive solicitors. Allowing their dishonest activities to thrive, so in most cases there are unlikely to be any creditors who will have the funds to launch a challenge to their corruption in court. Irwin Mitchell and Begbies Traynor Group PLC have been paid handsomely circa £700,000 from my estate and my claim is based that all fees were obtained by fraud. Thankfully, I have support from Government in help with fees.

[@rudymarin3700]

I like

[@BridgesMaud-l8r]

Wisozk Cliff

[@JefferySmith-v4t]

Yolanda Grove

[@DorethaGubbins-c8p]

Jany Gardens

[@thepubliceye263]

Imagine witnessing such a fascinating display and the most important thing to ask is why there is a gender imbalance. Some people are so mind-numbingly mediocre.

[@MajorKlanga]

Isn't this where self-proclaimed man of the people Nigel Garage started his career?

[@joshdean9105]

Mark McMarkface Yes, the great man himself, Farage, descended upon here in his early years.

[@AbrahamJoyce-r1y]

Schmidt Square

[@CJSHM]

Jesus fix your microphone.

[@MollieMatusiak-h1u]

Boyer Rue

[@subban]

Why do you even need this? You can trade all this electronically.

[@finlaycordiner3492]

doesn't look very organized

[@stevec00ps]

Believe me it is. That's actually quite quiet sessions on show there. Four of the people sitting on the red leather are keeping track of every conversation and trade and relaying that back in real time to the market operations team.

[@finlaycordiner3492]

Thanks.

[@thegargoylemanuk]

"There is a notable absence of women". Not as notable as the absence of black or brown faces.

[@ashleigh3021]

G Man Maybe those people should work harder to get in then.

[@MrJbuzz19]

Sooooo???? Who cares!

[@MrJbuzz19]

Would you say there is an absence of white faces in a middle eastern or Asian trading floor? Oh that’s right, double standards are okay when it comes to whites and race.

[@WeirdWackyWonderfool]

You live in a strange world if you thought there would be

[@gileswelham2619]

Perhaps the "black or brown faces" aren't interested in working in the metals trading industry? ......You might as well say you visited a tea plantation in Sri Lanka and were perplexed at the lack of White Europeans working there 🤔

[@moneyprintergobrr6501]

Sorry but IT IS a circus show.

[@importedmusic]

As rediculous and bizarre as that reporter's hair cut.

[@gamesarab3720]

انا جف

[@PatriciaSullivan-o1m]

Johnson Sandra Robinson Eric Moore Jason

[@ABMW-tech]

funny :)

[@nicolasblume1046]

Wtf 😂

[@furhanpatil5731]

Anyone here after the webseries scam 1992?

[@benzimason5976]

The functional equivalent of letting a lot of rats into a granary.

[@esanch4918]

Maybe it’s nostalgia or naïveté, but I feel my money would be more well cared for and secure in this environment rather than the newer, cyber environment where these decisions are executed by algorithms.

[@jasmitmahaup]

Covit covit covit

[@andrewlong6438]

Very few women and people from other minorities too. Does feel like an exclusive club. Interesting video though.

[@roryboytube]

Who cares?

[@MrJbuzz19]

What's your point? Would you say Asian and Arab trading floors need more whites? Would you say Isreal needs more gentiles? If an African country could have a thriving economy would you say there needs to be more white faces there? Whites are the world's minority. Wake up.

[@gileswelham2619]

You can have equality of opportunity but not of outcome.......this is one example of that fact. Had it crossed your mind that maybe women and minorities aren't actually interested in working in the money/commodities markets? If you leave most people to make their own decisions about their own career choices then you'll get the genuine results rather than the results that the radical leftist movement would encourage.

[@МаксимЗюзин-л5б]

222

[@МаксимЗюзин-л5б]

6

[@SimonChengHK]

We cannot find any mobile application for (London stock exchange )not the LSE in iOS store , only can find America New York stock exchange and Nasdaq , Wow , it is surprising of the noisy than high-end night club music , why the dealer and investor not using true wireless Bluetooth five points zero with voice of internet protocol phone , the old tradition classical phone anaglog is easily to intercept by the competitive and market regation , even dummy Chinese spicy hotpot restaurant have much high technology equipment than those billionaire taxpayer 💰, can the investor accept mobile payment as an protencial funds ? Or only accept checks? For likes loyale TSB , bank of England , bank of Scotland , NatWest, also Deutsch bank (UK) , BMO amro (UK) , UBS AG (UK) credit Suisse (UK) , bank of China (UK) , minjuko (UK), (UFJ)(UK) etc ?