LME Trading Halted During Vital Settlement Window

GFN – LONDON:

Trading across all contracts on the London Metal Exchange was halted Monday afternoon after an issue with the exchange’s electronic trading platform prevented dealers from placing orders in markets ranging from aluminum to zinc during a volatile period for industrial metals.

According to the London Metal Exchange (via BBG), trading was suspended after a technical issue was identified with its electronic trading platform, preventing market participants from submitting orders across contracts including aluminum, copper, zinc, and other base metals, according to an exchange statement. Trading data showed the halt began at approximately 2:44 p.m. local time, while other operational systems remained functional as the exchange investigated the disruption.

“We are aware of an issue and are working to resolve it as soon as possible,” a spokesperson for the London Metal Exchange said in an emailed statement.

Markets remained halted as of 4:00 p.m. local time, the time that typically marks the start of the exchange’s electronic trading window used to determine daily closing prices. The exchange indicated that trading services were expected to be restored following the publication of closing prices once system functionality had been confirmed.

The disruption occurred during a period of heightened volatility across metals markets linked to geopolitical developments and supply concerns affecting industrial commodities. Prices were mixed before the outage, with copper trading about 0.6% higher while aluminum declined roughly 1.3% in earlier activity.

Recent months have seen several trading interruptions across global commodity markets. The London Metal Exchange experienced a delayed start to trading on Jan. 30 due to a system issue, while CME Group faced a prolonged outage in November that temporarily disrupted activity across multiple derivatives markets. Traders in CME Group’s natural gas market also encountered a brief outage during a period of extreme price volatility in January.

The London Metal Exchange introduced a new electronic trading platform in March last year as part of a broader technology modernization effort aimed at improving system functionality and expanding screen-based trading participation following market disruptions associated with the 2022 nickel crisis, a transition that continues to shape operational resilience across global metals markets.