Barclays Quits LME Floor to Trade Metals on Screen

Barclays Canary Wharf

Barclays withdrew Thursday from floor trading on the London Metal Exchange, the world’s biggest metals bourse, as the bank reviews its businesses to cut costs.

Bloomberg reports that the London-based bank became a Category 2 member of the exchange with immediate effect, meaning it will continue to trade electronically and by telephone, the LME said in a notice to members today. Barclays remains 'deeply committed' to the metals market, it said in a statement.

Barclays’ withdrawal leaves 11 companies still in the LME’s 6-meter-wide (20-foot) ring, London’s last venue for open-outcry trading. Natixis also stopped floor trading in July to become a Category 2 member, and Jefferies joined, hiring traders from the French bank. Barclays Chief Executive Officer Antony Jenkins is reviewing which parts of the bank will be sold or shrunk as it seeks to bolster returns.

'They’ve probably decided this function isn’t critical', said Ian Gordon, a London-based analyst at Investec who recommends buying shares of Barclays. 'Is it a continuation of the cost cutting program ? Yes, probably'.

Hit the link below to access the complete Bloomberg article:

Barclays Quits LME Floor to Trade Metals on Screen

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