Clear Street, a U.S. broker, is seeking regulatory approvals in the UK to join the London Metal Exchange (LME) open-outcry trading floor, according to a source familiar with the situation. This move would bring the number of dealing members back to eight, following Societe Generale’s recent exit from the trading floor.
The broker’s UK arm, Clear Street UK Ltd, was incorporated in July 2023. Clear Street Futures, led by Chris Smith—formerly the head of ED&F Man Capital Markets—aims to re-establish a presence in LME’s historic trading environment. Smith had previously been part of a ring-dealing member of the LME.
The LME, the oldest and largest market for industrial metals, had proposed closing its trading floor three years ago, shifting towards electronic trading. However, due to strong opposition from physical users, it now operates on a hybrid model, combining open-outcry trading for official pricing with electronic systems for closing prices.
Despite Societe Generale’s departure, the remaining firms on the trading floor have expressed their commitment to maintaining the traditional trading practice.