<p>The London Metal Exchange said on Tuesday it will reopen its open outcry trading floor on Sept. 6, but added that it also believes electronic trading is the way forward.</p>.<p>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 the theatre of arcane hand signals and frenzied shouting by traders.</p>.<p>In January, the world's oldest and biggest marketplace for industrial metals launched a consultation process on closing Europe's last open-outcry trading floor, arguing that the forced migration to digital trading was a success.</p>.<p>The LME also proposed in its consultation paper switching the methodology for calculating clearing margins to a realised variation model (RVM) from the existing contingent variation model (CVM).</p>.<p>But it has committed to retain CVM in the medium term and will embark on a feasibility study that will look into recreating the cash flows of a CVM model for RVM contracts, the exchange said.</p>.<p>"(This) could support the traditional brokerage community in the provision of credit to their smaller physical clients."</p>.<p><strong>Check out DH latest videos:</strong></p>
<p>The London Metal Exchange said on Tuesday it will reopen its open outcry trading floor on Sept. 6, but added that it also believes electronic trading is the way forward.</p>.<p>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 the theatre of arcane hand signals and frenzied shouting by traders.</p>.<p>In January, the world's oldest and biggest marketplace for industrial metals launched a consultation process on closing Europe's last open-outcry trading floor, arguing that the forced migration to digital trading was a success.</p>.<p>The LME also proposed in its consultation paper switching the methodology for calculating clearing margins to a realised variation model (RVM) from the existing contingent variation model (CVM).</p>.<p>But it has committed to retain CVM in the medium term and will embark on a feasibility study that will look into recreating the cash flows of a CVM model for RVM contracts, the exchange said.</p>.<p>"(This) could support the traditional brokerage community in the provision of credit to their smaller physical clients."</p>.<p><strong>Check out DH latest videos:</strong></p>