BOOZE has been banned during working hours for traders operating on the London Metal Exchange (LME) in an effort to tidy up standards at the 142-year old exchange, said the Financial Times in an article republished by BusinessLive.
“The LME has broad powers under its rule book to ensure fit and proper behaviour,” the newspaper cited the exchange as having said on Friday (June 14). “The LME appreciates the high standards upheld by its members, and has formalised the general position that Ring-based personnel should not consume any alcohol prior to conducting business.”
Members of the “Ring” – the circular trading floor where brokers sitting on red sofas help set global prices for copper, nickel and aluminium – were informed of the decision on Thursday evening., said the Financial Times.
The rule change, which will apply to about 120 people, is the latest step to formalise standards of behaviour at the 142-year-old exchange, whose traders used to have a reputation for long, boozy lunches.
Nigel Farage, the Brexit Party leader, has spoken fondly of the long drinking sessions at the exchange where he used to trade metals before entering politics, the newspaper said.
In terms of the new rules, fines can be imposed.
“It’s a soft weapon they can use if someone is well and truly over it,” said Malcolm Freeman, a veteran metals trader and director at Kingdom Futures. “It’s also waving a big white flag to regulators that they are controlling the floor.”
