LONDON, July 21 Dealers on London's venerable
metals exchange have been fined over one thousand pounds
($1,700) for standing up during turbulent trading.
The London Metal Exchange (LME) is the last in Europe to use
noisy open outcry trading with arcane hand signals, used to deal
in copper, aluminium, lead, nickel and zinc in the intense five
minute bursts of the "ring."
Although apparently chaotic, traders are strictly forbidden
to get up from the circle of padded red leather seats that make
up the ring.
"The LME operates a ring, not a pit. Dealers that stand
create an unfair advantage and might obstruct the view of other
dealers and LME pricing committee members," spokeswoman Kathy
Nine dealers trading copper on July 11 were fined a total of
13,750 pounds and one of the traders was also suspended from
trading for two days because it was his second offence within
three months, the 137-year-old LME said in a members' notice
dated July 18.
First offence dealers were fined 1,250 pounds, while second
offenders got double that.
The LME, owned by Hong Kong Exchanges and Clearing Ltd
, has strict rules for its open outcry traders,
including a dress code that requires a suit, tie and dark shoes.
Chewing gum is prohibited as are mobile phones in ring dealing
($1 = 0.5860 British Pounds)
(Reporting by Eric Onstad, editing by William Hardy)