Members of the London Metal Exchange have voted overwhelmingly to become shareholders, as the LME restructures in preparation for a new era of online competition.
Only one associate broker clearing member (ABCM) decided to take a cash settlement instead of shares at an Extraordinary General Meeting held today to approve the LME’s change of status. At present the LME has 28 ABCMs. All existing ring dealing members will take shares. The LME has in total 95 members that were eligible to choose whether to take shares or a financial settlement
In other categories one associate broker member (ABM) and four associate trade members (ATM) have notified the Exchange that they wish to take the financial settlement proposed. At present there are 7 ABMs and 45 ATMs.
LME chairman Lord Bagri comments: “It is very clear that our members see us moving confidently in a proactive way to take up the opportunities of a changing competitive environment. Aside from the work on restructuring, we are now entering the final straight in deciding on which of two world leading technology companies will develop our screen based trading system.
David King, chief executive of the LME, adds that two shortlisted companies will complete and submit their final bids today: “We anticipate comprehensive documents that will require very thorough analysis for us to prepare for presentations to the board. That work, of course is high priority and will be completed early next week.