Wednesday, June 25, 2014
Tuesday, June 24, 2014
According to a Wall Street Journal article today on Page C3 ("London Hangs on to Ring" by Laura Clarke), the London Metal Exchange has decided to keep its face-to-face open outcry market process. This is in an era in which computerized trading has replaced face-to-face open outcry systems in a number of exchanges. I really liked the comment of Robin Bahr:
"I think it's a very efficient price-discovery process.....There's a feeling that it's transparent, people can see it. You get a good feel for how trading is taking place because your traders are facing each other on the floor."
Sounds like a dissertation topic for a student in experimental economics.