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LME Plans Changes That Would Make Contracts More Algo-Friendly
The London Metal Exchange is planning to make its process of setting end-of-day prices more predictable, a move that could favor algorithmic traders over more traditional brokers. The exchange on Wednesday announced long-awaited changes to its closing price methodology, saying it would expand the use of volume-weighted averages to set prices for its five main contracts. The move is still subject to feedback from its members. The method for determining prices is a fraught issue at the LME, which has been gradually adopting modern trading technology alongside its iconic 146-year-old open outcry trading floor, known as ... (full story)