He also tried to distance the LME from any unofficial parties that could harm the giant or larger market. Strip clubs learned in 2019 that they “couldn’t bring up the LME’s name” to do business at its annual gathering.
“The kind of people who abuse our name – adult entertainment venues that say, ‘it’s LME week, come to our venue’ – they never meant to ask for our approval; they just did. In 2019 [after speaking to them], we haven’t seen any of these behaviors. Did people still go to these places? Yes, but it is their right as adults, ”he explains.
“Our industry, and probably society as a whole, has changed for the better. I would be really disappointed if we saw a reversal in 2019. We are pushing on an open door – our members and clients want to be compliant.
Yet many in the market disagree that there is a cultural problem. Nigel Farage lamented how sterile the city had become during a 2016 Financial Times luncheon involving “bachelor party” alcohol levels. He traded metals at the LME in the 1980s and said being in town now was like “being a drum chicken” in comparison. In the past, workers could “go back to work, crimson” after drinking at lunch, he said, and “nobody cared.”
But a line was drawn on those alcoholic days when the SCL introduced its ban on daytime drinking. Consumption of alcohol in “moderation” and at “appropriate events” was deemed acceptable, but drugs were prohibited. John Meyer, mining analyst and partner of broker SP Angel, argues that the reputation of metal traders as excessive partygoers is outdated.
In the 90s, “traders in the city were walking around with wads of £ 50 bills and getting big, but it had more to do with deregulating the city with traders making easy money,” says -he. “There is a lot less excess in today’s tightly regulated markets. But with China restricting commodity futures trading in Hong Kong, we expect to see more Asian silver trading in London, so good times for LME traders may well pick up. “