LME calls time on alcohol during work hours

THE London Metal Exchange (LME) is banning floor traders from drinking alcohol during the working day as part of a new “zero tolerance” policy that could result in fines or even bans for breaking the rules.

At a meeting on Thursday, the LME told its open outcry dealers it expected them to apply a zero-tolerance alcohol policy for floor traders, who are responsible for setting global benchmark prices for industrial metals such as copper and aluminium, according to people who did not want to be identified. The exchange could impose fines and trading bans for breaches of the rules, they said.

A spokesman said: “The LME has broad powers under its rule book to ensure fit and proper behaviour on the Ring and Ring dealing, and members have policies and procedures in place regarding the behaviour of their staff while conducting business on the Ring. “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.”

The LME told dealers in the meeting to apply the new policy to floor traders with immediate effect.

The Daily Telegraph understands that the new rules were not prompted by any internal incidents at the exchange. “I think the LME is conscious of broader issues happening across the City, and wants to follow examples set by Lloyd’s of London and other big names,” said one market observer. “They have to show they’re getting with the times.”

Brexit Party leader Nigel Farage was a trader at the exchange when he started working in the City in the Eighties. He likened working at the modernday LME today to “being a battery chicken” in an interview with the Financial Times last year.