(Kitco News) The London Metal Exchange (LME), the world's oldest and largest market for industrial metals, announced that it would remain open on September 19, the day of Queen Elizabeth's funeral.
"Reflecting the international nature of the LME's market and taking into account the potential impact of the short notice from an operational risk perspective, the Bank Holiday will constitute a Business Day for the purposes of the LME and LME Clear Rules, and the markets themselves will remain open," the LME said in a press release Tuesday.
Whether to close or remain open was a difficult decision for the LME because the Queen's funeral falls on an important calendar date - when monthly valuations for September are established. This is why it is choosing to keep operations running.
"A full market closure of trading, with only a few days' notice, would create undue operational risk. This is particularly the case because September 19 represents the key trading day to establish September monthly valuations," the 145-year-old exchange said. "The LME has carefully considered how best to balance the interests of the market, our operational considerations and our desire to pay our respects."
However, despite the market staying open, there will be some changes. For example, the first open-outcry session will be canceled since it coincides with the timing of the funeral service.
Also, LME offices will be closed on September 19 out of respect for the Queen. And the exchange will be donating all trading fees from September 19 to the Queen's charities.
The decision contradicts the nation's declared public holiday. Over the weekend, Buckingham Palace announced the date for the funeral, with the UK observing a national holiday on that date.
Most UK commodity markets, including gold and soft commodities, will be closed for the funeral, including the London Bullion Market Association (LBMA).
"The London market will be closed and there will be no metal settlements in the UK on that day … ICE Benchmark Administration has confirmed that on Monday, September 19, 2022, there will be no AM or PM auctions for LBMA Gold and LBMA Silver prices," the LBMA said. "The London Metal Exchange has also confirmed that on Monday, September 19, 2022, there will be no AM or PM auctions for LBMA Platinum and LBMA Palladium prices."
One exception will be Brent crude oil, with ICE Futures Europe stating that the contract would operate as usual.
