November 29, 2018 / 2:24 PM / 12 days ago

AMT to become first LME ring trader as ferrous liquidity provider

FILE PHOTO: Traders work on the floor of the London Metal Exchange, in London, Britain September 27, 2018. REUTERS/Simon Dawson/File Photo

LONDON (Reuters) - Broker Amalgamated Metal Trading Ltd has been appointed by the London Metal Exchange as a liquidity provider for its steel contracts, giving a boost to the market as the first ring trader in that role.

AMT is one of nine top tier LME members that are allowed to trade in the open outcry ring as well as over the telephone and on the exchange’s electronic system, meaning it could theoretically offer deeper liquidity than some peers.

AMT will join four other liquidity providers for the LME’s steel scrap and rebar contracts on Dec. 1, the exchange said in a notice on Thursday.

The steel contracts were launched three years ago and the scrap contract has attracted growing volumes, trading 2.27 million tonnes in the five months to October, up 58 percent from the same period in 2017.

The existing liquidity providers are Alpha Academic Ltd, Ferrometrics LLC, Gerald Metals SA and Nine Square Multi Trading DMCC.

The LME is owned by Hong Kong Exchanges and Clearing Ltd (0388.HK).

Reporting by Eric Onstad; Editing by Jan Harvey

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