| A leading international market, located in London, for the trading of non-ferrous metals, namely copper, primary aluminium, aluminium alloy, lead, nickel, tin and zinc, primarily for industrial use. LMEs origins can be traced as far back as the opening of the Royal Exchange in 1571 where metal traders first began to meet on a regular basis. In 1877, the London Metal Market and Exchange Company was formed as a direct result of the industrial revolution that led to a massive increase in the UKs consumption of metal, in turn requiring the import of enormous tonnages from abroad. Trading now can be by open outcry, telephone and electronically. Its prime function is hedging with the bulk of turnover originating from trade clients. Other dealings include futures and options contracts and arbitrage trading. The LME is a recognised investment exchange (RIE), and the market participants are regulated by the Financial Services Authority (FSA).
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