London Metal Exchange market to remain open on Queen’s funeral: ‘A full market closure would create undue operational risk’

(Kitco News) The London Metal Exchange (LME), the world’s oldest and largest industrial metals market, announced it would remain open on September 19, the day of Queen Elizabeth’s funeral.

“Reflecting the international nature of the LME market and taking into account the potential impact of the short-term notice from an operational risk perspective, the bank holiday will constitute a business day for the purposes of the LME and the LME Clear Rules, and the markets themselves remain open,” the LME said in a press release on Tuesday.

Whether to close or stay open was a difficult decision for the LME because the Queen’s funeral falls on an important date in the calendar, when monthly valuations are set for September. That’s why you’re choosing to keep operations running.

“A complete closure of market trading, with only a few days’ notice, would create undue operational risk. This is particularly the case as September 19 represents the key trading day for setting September monthly valuations,” the statement said. 145 year old bag. . “The LME has carefully considered how best to balance market interests, our operational considerations and our desire to pay our respects.”

However, even though the market remains open, there will be some changes. For example, the first open cry session will be canceled since it coincides with the time of the funeral service.

In addition, the LME offices will be closed on September 19 out of respect for the Queen. And the exchange will donate all trading fees from September 19 to the Queen’s charities.

The decision contradicts the declared national holiday. Over the weekend, Buckingham Palace announced the date of the funeral, and the UK observed a national holiday on that date.

Most UK commodity markets, including gold and soft commodities, will be closed for the funeral, including the London Bullion Market Association (LBMA).

“The London market will be closed and there will be no UK metals settlements on that day…ICE Benchmark Management has confirmed that there will be no AM or PM auctions for LBMA Gold prices on Monday 19th September 2022.” and LBMA Silver,” the LBMA said. “The London Metal Exchange has also confirmed that there will be no AM or PM auctions for LBMA Platinum and LBMA Palladium prices on Monday, September 19, 2022.”

An exception will be Brent crude oil, with ICE Futures Europe stating that the contract would trade as usual.

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